Management Midterm

Managerial Skills

1. Conceptual Skills: The ability to see the organization as a whole and understand how the different parts affect each other. 2. Human Skills: The ability to work well with others. 3. Technical Skills: The specialized procedures, techniques, and knowledge required to the the job done.

Encouraging Ethical Behavior

-Recruit, select, and hire ethical people - Establish code of ethics - Provide training - Create an ethical climate - Measure and enforce

Effective Missions

Brief, clear, inspirational, consistent with values and beliefs of company.

GANTT Chart

Type of bar chart that illustrated a projects schedule. Te=To+4Tm+Tp/6 o=optimistic p=pessimistic m= realistic

Corporate Strategies: Portfolio Strategy

-Guide the strategic decisions of corporations that compete in a variety of businesses - Employing a portfolio strategy can either develop new businesses internally or through acquisitions, other companies to buy. Goal is to add businesses. - Unrelated diversification- creating or acquiring companies in completely unrelated fields. Therefore if a business goes down it is not in the same market at the other businesses providing smaller losses.

6 Step Model of Ethical Decision Making

-Identify the problem -Identify constituents -Diagnose situation -Analyze options -Make your choice -Act

Quality in Service Provision (RATER)

-Reliability (most important) - What you promise the first time - Assurance - Customers feel confident in service -Tangibles- Prove you have high quality service, clean, workers dress nice, word of mouth is good. - Empathy- make it clear that you care about customer -Responsiveness- Promptly respond

Characteristics of Good Team Meetings

-Written agenda - Start and end on time -Begin with review of last meeting - Clear ground rules for decision making -Include extra time for questions -Encourage equal participation -End with summary of who is doing what.

Manager Models

1. CEO, President, VP 2. Sales director, HR manager 3. Supervision, assistant, sales manager.

Industry Strategies

1. Cost Leadership- broad target, producing a product or service at the lowest price in the industry (Walmart) 2. Differentiation- broad target, higher price, specific, but make it worth it (organic grocery store) 3. Cost Focus- narrow target, cheap but not many options or much for differentiation (Aldi's, dollar store) 4. Focused Differentiation- narrow target, extremely expensive, limited amount of people buy it. (Nikon Camera)

Balanced Score Card

Measurement of organization performance in four equally important areas. -Finances-profitablity -Customers- on time flights, low prices -Internal Organizations- fast ground turnaround -Innovation and learning- Ground crew alignment with goals Forces managers at each level of the company to set specific goals and measure performance in each of the four areas. Minimizes the chances of sub optimization, which occurs when performance improves in one area at the expense of decreased performance in others.

Mechanistic and Organic Design

Mechanistic (stable and predictable work environment) -Very clear chain of command -Vertical communication -Centralized authority -Low delegation -High specialization Organic (dynamic and unpredictable work environment) -Think broadly about who you report to -Lateral communication -Decentralized authority -High delegation -High generalization

What is a Mongrel, Why is it a good thing? (Zachary Article)

Mongrel is mixing of races, ethnic groups, and nationalities at home and abroad. -Good because diverse groups simply produce diverse thinking.

Span of control

Number of people who report to a manager -narrow span of control- create "tall" organizations -wider span of control- create "flat" organizations

Kirk Ferentz has a base salary plus bonuses. This is most like?

Objective Control

Environmental Scanning

Systematically searching the environment for events or issues that might affect and organization. - Pros- Keep company current, reduce uncertainty, alter strategy, contributes to organizational performance, and avoids confirmation bias. How to: systematically study environments characteristics and changes occurring. Interpret for impact on your business- threat or opportunity, seek disconfirmation, look for evidence that contradicts your interpretation.

Definition of Tariff and Nontariff

Tariff is a direct tax on imported goods. Increase the cost of imported goods relative to that of domestic good. Nontariff are non tax methods of increasing the cost of reducing the volume of imported goods. -Quotas- limit on number of products - Voluntary Export Restraints- limit amount annually -Government Import Standard- Protect health of citizens. Ban goods -Government Subsidies- long term, low interest loans, cash grants to protect companies -Custom Valuation/Classification- As products are imported into a country, they are examined by custom agents.

Work Team Characteristics

Team Norms: informally agreed on standards that regulate team behavior Team Cohesiveness: Team members attracted to team Team Size: 6-9 members Team Conflict

Economic Value Added (EVA)

The amount by which company profits exceed the cost of capital in a given year •How to calculate 1. Calculate net operating profit after taxes a. Subtract taxes owed from income from operations 2. Identify how much capital the company has invested 3. Determine the cost paid for capital (usually between 5% and 13%) a. Determine the interest paid to bondholders, and the return that stockholders want in terms of dividends and stock price appreciation. Take a weighted average of the two to determine the overall cost of capital. 4. Multiply capital used (step 2) times cost of capital (step 3) 5. Subtract the total dollar cost (step 4) of capital from net profit after taxes (step 1)

Cohesiveness and How to Build

The more members that like the team, the more willing they will be to contribute Improve by... -All members present - Make extra work time together - Doing something non work together - Create special identity

Chain of command

The vertical line of authority that clarifies who reports to who throughout the organization -higher in the chain of command have the right, if they choose to, to give commands, take action, and make decisions concerning activities occurring anywhere below them in the chain.

Which is most likely the relationship between social responsibility and economic performance in general?

There is generally a small positive relationship .

Logic of contingency design

There is no single best design for all companies and situations -Burns and Stalker (1961) -Must determine the degree of environmental uncertainty and adapt the organization and its subunits to that situation.

From the change or die article, according to the CEO what percent of patients actually change lifestyle after heart bypass surgery?

30?

Team Productivity Equation

Actual Productivity= Potential Productivity+Process Gains - Process Losses

Ethics

Set of moral principles or values that defines right from wrong

CSR Relationship with economic performance

Small positive relationship between social responsibility and economic performance. -creates hype about companies product.

Process Gains

-Information Exchange -Load Balancing -Social Facilitation- learn from others

Key Ideas behind Burn Your Business Plan

1. Purpose Statement- Vision (what) and mission (why) we want to do. 2. Strategic Objectives- specific goals that unify company- wide effect. - Stretch and challenge people - Tactical Plans: The How - Operational Plans: Day to Day

Types of Conflict

1.) Task Conflict: Good -Have within discussions while debating ideas - Promote with devils advocate and clears understanding. - Nominal Group Technique 2.) Relationship Conflicts: Bad - Reject of degrade an idea because of the person who came up with it - Harmful and needs to be avoided.

What is a mongrel according to the Zachary article?

A person comfortable in multiple cultures

Morgenstern's Time Management Tips

Assign to do lists and if theres not enough time to accomplish everything.... -Delete -Delay -Diminish -Delegate

Ethical Behavior

Behavior that conforms to a societies accepted principles or right and wrong.

According to lecture, which of the following is one of the least recognized or most undervalued ways of getting into business?

Buying a franchise

Emotional Control Activities

Count your blessings: Count three positive things each day. Think of all you've accomplished.

Ethonomics

Ethical economics, earning profits while being ethical with resources, society, and open to the public.

Stage 2 of Self Management Process

Goal Setting: Tip- What do I need to do in order to get where I need to go? Set SMART Goals. Mistake- Fail to set goals, set vague goals, Fail to follow through goals, set goals that are too easy.

Whats the drawback of wide spans of control?

High managerial workload

What do managers need to know about tariffs and trade

Important because free trade agreements increase choices, competition, and purchasing power and thus determine what people pay for food, clothing, necessities, and luxuries.

Components of a Triple Bottom Line

People, Plants, Profit

Whats the drawback of organizing by function?

Slow decision making

PERT Networks

Statistical tool used in project management, which was designed to analyze and represent the tasks involved in completing a given project.

Toshiba and General Electric share expertise to create smart light bulbs. They also share the costs and profits equally. This is most like.

Strategic Alliance

Getting Into Business

- Family Owned- Passing down from family members - Starting new- New idea - Buy existing- Business thats already running. - Buy franchise- pay a franchise fee/payment to take over an existing business.

Corporate Strategies: Grand Strategy

-Growth strategy- focus on increasing profits, revenues, market shares, or number of places to do business. -Stability strategy- focus on improving the company, sells same products to the same customers. Seeks how to improve what they have. - Retrenchment strategy- focuses on turning around a very poor company performance by shrinking the size or scope of the business. (shutting down different locations)

Types of Ownership

- Proprietorship (1 person) - Partnership (2+ people): earnings considered personal income. (taxed once) -bank can take personal assets - Corporation- separate legal entity, profits are taxed through businesses and taxed when profits go to owners. (taxed twice)- bank can take business assets - Subchapter S Corporation: All earnings are passed through to the personal person (taxed once) - Bank can take business assets -Limited Liability Company (LLC)- similar to subchapter s-corp.

Characteristics of Service Provision

-Customers Participate- customize things such as food at restaurant. -Service are consumed immediately- Produced and consumed at the same time - Services are provided when and where customer desires - Services tend to be labor intensive- one on one - Services are intangible- know quality when try it out.

Process Losses

-Group Maintenance (unavoidable)- hard to find time to work together. - Social Loafing - easier to not work as hard when in group -Production Blocking- wait for everyone to share opinion

Component of Specific Environment

1. Customers- Reactively: waiting for customers to complain. Proactively: captivating customers before they complain. 2. Competitors- same product or substitutes 3. Suppliers- Raw inputs 4. Industry Specific Law/Regulation- Political legal environment- only targeted at a certain market 5. Advocacy Groups- Interested in how you do business.

Components of General Environment

1. Economy- Grow or shrink - Ask CEOs, conference board 2. Technology- umbrella term: knowledge, procedures - Changes are important to monitor- Wall Street Journal 3. Sociocultural- Attitude, Value, Demographic, General behavior of society. - Affects workforce- who you can hire. 4. Political/Legal- Laws and regulations that affect all business.

Three Characteristics that create uncertainty

1. Environmental Complexity- number and intensity of external factors in the environment 2. Resource scarcity- abundance or shortage of critical organizational resources in external environment. 3. Environmental Change- Rate at which company environments change.

Mintzberg's Managerial Roles

1. Interpersonal Roles: Face to Face. - Figurehead Role: The interpersonal role managers play when they perform ceremonial duties. - Leader Role: Interpersonal role managers play when they motivate and encourage workers to accomplish objectives. -Liaison Role: the interpersonal role managers play when they deal with people outside their units. 2. Informational Role: Obtain and share information. -Monitor Role: Scan the environment for information. - Disseminator Role: Share information with others in their departments or companies. -Spokesperson Role: Share information with people outside their company. 3. Decisional Roles: Making decisions based on information. - Entrepreneur Role: Adapt themselves, subordinates, and units to change. - Disturbance Handler Role: Respond to severe pressures and problems that demand immediate action. - Resource Allocator Role: Decide who gets what resources and in what amounts. - Negotiator Role: Negotiate schedules, project goals, outcomes, resources, and raises.

Two Different Types of Cooperative Contracts

1. Licensing- Agreement, receives royalty payment for allowing another company to produce, sell, or use a brand name. 2. Franchise: Collection of networking firms in which the manufacturer or marketer of a product licenses the entire business to another person.

Hofstede's Dimensions

1. Long-term vs. Short-term orientation: far out into the future focus on present seek immediate gratitude -China, Hong Kong= strong long term -Russia, WA, US= strong short term 2.Uncertainty avoidance -Degree to which people are comfortable with uncomfortable situational -Japan, France, West Africa, Russia= strongest 3.Masculinity vs. Femininity -Traits with masculinity: competitive, high achieving -Traits with femininity: relationships, modesty -US, Japan, Germany= masculine 4.Individualism vs. Collectivism -Rely on self vs. groups -US, France, Germany= strong -China, West Africa= weak 5. Power distance -Amount that people will handle having high power, told what to do -USA is a low power distance -Denmark/Sweden= Weak, don't like bosses to have power over them -Russia/China= strong

Transition to Management

1. Managers Initial Expectations: Be the boss, formal authority, manage tasks, job is not managing people. 2. After six months: Initial expectations were wrong, fast pace, heavy workload, job is to be a problem solver and troubleshooter for subordinates. 3. After a year: No longer a doer, communication, listening, positive feedback, adapt and control stress, job is people development.

Four Functions of Management (POLC)

1. Planning- Determine goals and means for achieving them. EX: Rules, procedures, budget, and plan 2. Organizing- Deciding where decisions will be made, who will do what jobs, and who will work for whom. EX: Departments 3. Leading- Inspire and motivate workers to work hard and achieve organizational goals. EX: conflicts and communication. 4. Controlling: Monitoring progress toward goal achievement and taking corrective action when needed. EX: set standards and compare performance.

Stages of Moral Development

1. Preconventional- people decide based off selfish reasons - Stage 1: punishment and obedience- primary concern is to avoid trouble - Stage 2: Instrumental Exchange- focus more on advance your wants and needs. 2. Conventional- decisions conform to societies expectations -Stage 3: Good boy, nice girl- do what others are doing -Stage 4: Law and order- follow the law 3. Principled: Post Conventional- ethical principles to solve dilemmas, only 20% in this. - Stage 5: Social Contract- society is better off when the rights of others are not violated -Stage 6: Universal Principle Stage- depends on your own right and wrong.

Ethical Principles

1. Principle of Long Term Self Interest-you should never do an action that is not in your long term self interest. 2. Principle of Religious Injunctions- Do not take part of action that does not build a sense of community. 3. Principle of Government Requirements- Never do action that violates law 4. Principle of Individual Rights- Never do action that infringes on others agreed rights. 5. Principle of Personal Virtue- Never do action that is not honest, open, or truthful and you wouldn't want in news. 6. Principle of Distributive Justice- Never do anything that harms the least fortunate among us. Poor or uneducated. 7. Principle of Utilitarian Benefits- Never do anything that doesn't result in good for society.

Responsibility Strategies

1. Reactive- against the push, fights against CSR 2. Defensive- willing to admit they have SR problems, but do little to fix the problems 3. Accommodative- accept the SR problems, will do what is expected to fix problem 4. Proactive- Anticipate for social problems, leads as a cutting edge company, stops the problem before it happens.

Enhancing Work Team Effectiveness

1. Set team goals and priorities: structural and bureaucratic 2. Selecting people for teamwork: individual collectivism, team level, diversity. 3. Team training: interpersonal, decision making. 4. Team compensation and recognition- skill base pay, gain sharing.

How to make a plan that works.

1. Setting Goals- to direct behavior & increase effort, goals need to be specific and challenging (suggestion is to use SMART goals) 2. Develop goal commitment- the determination to achieve a goal. Commitment to achieve a goal is not automatic. Managers and workers must choose to commit themselves to a goal (suggestion is to set goals participatively rather than assigning) 3. Develop effective action plans: action plan lists the specific steps (how), people (who), resources (what), and the time period (when) 4. Tracking progress- two different methods. Setting goals and gathering/providing performance feedback. • Setting goals: proximal goals, are short term goals & distal goals are long-term • Regular, frequent performance feedback: allows workers and managers to track their progress toward goal achievement and make adjustments in effort, direction, and strategies 5. Maintaining flexibility- Action plans are sometimes poorly conceived and goals sometimes turn out not be achievable, the last step in developing an effective plan is to maintain flexibility. One method is: • Options-based planning- keep options open by making small, simultaneous investments in different plans. Once a few plans start to appear as winners invest more and more while discontinuing investments in the other plans.

Internationalization Process (5 Big options)

1. Stage 1: Export: Produce in home country, sell in another 2. Stage 2: Cooperative Contracts: Pays a fee to have the right to do your business -Licensing- home country receives reality -Franchise- Adopt the companies entire business plan- product, business plan 3. Stage 3: Strategic Alliance: Combine resources, cost, risk, and split resources. 4. Stage 4: Wholly owned affiliates: Completely owns a business in a different country 5. New Global Ventures: Don't follow 1-4 DHL, Global Shipping.

Two main roles team members play

1. Task Roles: Member uses knowledge, skill, and ability to get the job done - Devils advocate, listen, check understanding. 2. Social Roles: The role in which members build relationships within the members, resolve conflicts. TEAM LEADERS ARE SOCIAL ROLES

Types of Managers

1. Top Managers- executives responsible for the overall direction of the organization. 2. Middle Managers- Responsible for setting objectives consistent with top managements goals and planning and implementing strategies for achieving these objectives. Ex: Director, Manager 3. First Line Managers- Train and supervise the performance of non managerial employees are directly responsible for producing companies products or services. Ex: Supervisor, Assistant Manager 4. Team Leaders- Managers responsible for facilitating team activities toward goal accomplishment.

Types of Plans, Procedures, and Rules

1. Upper Management: - Strategic Plans- make it clear how the company will serve customers and position itself against competitors in the next 2-5 years. - Starts with a purpose statement. - Strategic objective- flow from purpose 2. Middle Management: - Tactical Plans- specify how a company will use resources, budgets, and people to accomplish specific goals related to its strategic objectives for the five years. -Discuss possible goals -Collectively select goals that are challenging, attainable, and consistent with the overall goals. - Jointly develop tactical plans that lead to the accomplishment goals and objectives - Meet regularly to review progress toward accomplishment of those goals. 3. Lower Management: - Operational Plans- Day to day plans for producing or delivering the organizations products and services. Direct the behavior, efforts, and priorities of operative employees for periods ranging from 30 days to 6 months. - Single Use Plans- deal with unique one time only events - Standing Plans- Can be used repeatedly to handle frequently occurring problems. 1. Policies- indicate the general course of action that company manager should take 2. Procedures- More specific than policies because they indicate a series of steps that should be taken. 3. Rules and Regulations- Even more specific because they specify what should happen. - Budgeting- Quantitative planning because it forces managers to decide how to allocate money to accomplish goals.

Types of Deviance

1. Workplace- unethical behavior that violates organizational norms about right and wrong. 2. Production- unethical behavior that hurts the quality of work produced. EX: leaving early, long breaks, working slow, wasting resources. 3. Political- Using influence to harm other in the company. EX: showing favoritism, gossip, blaming coworkers, competing. 4. Property- unethical behavior at organizationals property or products. EX: Sabotaging equipment, accept kickback, lie about hours, steal from company.

Key Characteristics of "Stars" (Webber Article)

4 Elements of Initiative: 1.) Going above and beyond job 2.) Helping other people 3.) Risk Taking 4.) Seeing activities through to completion. 3 Rules of Initiative: 1.) Before taking on new, make sure doing assigned job well. 2.) Social initiatives dont count for much 3.) Things that matter to career relate to companies critical path. Stars Network - Add to networks -Barter system (what they give and get in return) - Recognize what they don't know.

Corporate Strategies: BCG Matrix

A portfolio strategy that managers use to categorize their corporations businesses by growth rate and relative market share. Helps with deciding on where to invest. - Stars- companies have large share of a fast growing market. Firms must invest substantially in it- usually pay off. - Question marks- companies that have a smaller share of a fast growing market. May invest in these companies to make them stars, but because their relative weakness in the market investing is questionable. - Cash cows- companies have large share of slow growing market, companies in this position are highly profitable - Dogs- Companies have small share of slow growing market, not profitable.

Technology Cycles

Begins with the birth of new technology and ends when that technology reaches its limits and is replaced by a new, substantially better technology.

Methods of Control

Bureaucratic Control - the use of hierarchical authority to influence employee behavior by rewarding or punishing employees for compliance or noncompliance with organizational policies, rules, and procedures. Objective Control - The use of observable measures of worker behavior or outputs to assess performance and influence behavior -Behavior Control - The regulation of the behaviors and actions that workers perform on the job -Output Control - The regulation of workers results or outputs through rewards and incentives Normative Control - The regulation of workers behavior and decisions through widely shared organizational values and beliefs Concertive Control - The regulation of workers behavior and decisions through work group values and beliefs Self Control - A control system in which managers and workers control their own behavior by setting their own goals, monitoring their own progress, and rewarding themselves for goal achievement

Corporate Social Responsibility

Businesses obligation to pursue policies, make decisions, and take actions that benefit society through... -Economic- profit -Legal- law -Ethical- society -Discretionary- Honest

Budgets

Cash Flow Analysis - A type of analysis that predicts how changes in a business will affect its ability to take in more cash than it pays out Balance Sheets - Accounting statements that provide a snapshot of a company's financial position at a particular time Income Statements - Accounting statements that show what has happened to an organization's income, expenses, and net profit over a period of time Financial Ratios - calculations typically used to track a business's liquidity, efficiency, and profitability over time compared to other businesses in its industry Budgets - Quantitative plans through which managers decide how to allocate available money to best accomplish company goals

Centralization/Decentralization

Centralization- the location of most authority at the upper levels of the organization - Managers make most decisions, even small ones Decentralization- the location of a significant amount of authority in the lower levels of the organization -High degree of delegation at all levels. Workers closest to problems are authorized to make the decisions necessary to solve problems

Culture formation and maintenance

Company founders are instrumental in the creation of organizational cultures, however their legacy must be retold once they have left the business. 1. Organizational Stories- Make sense of organization events and changes to emphasize culturally consistent assumptions. 2. Organizational Heroes- Organizational people admitted for their qualities and achievements within the organization. Adaptability, involvement, a clear mission, and consistency help sustain.

Control Process

Control- A regulatory process of establishing standards to achieve organizational goals, comparing actual performance against the standards, and taking corrective action when necessary. Set Standards- A basis of comparison for measuring the extent to which various kinds of organizational performance are satisfactory or unsatisfactory - Compare with standard- compare actual performance with previous set standards - Identify Deviations- Identify performance deviations, analyze deviations, and develop programs to correct them. - Corrective Action- control process is cybernetic meaning steering or keeping on course.

The main disadvantage of organizing as a corporation is?

Corporate earnings are taxed twice

Redbox rents DVDs and video games through vending machines for $1. This industry positioning strategy is most like?

Cost leadership

Definition of Management

Management is getting work done through others. Concerned with efficiency and effectiveness in the work process.

Delegation, how to do well (3 transfers)

Delegation of authority, is the assignment of direct authority and responsibility to a subordinate to complete tasks for which the manager is normally responsible. 1 Transfer: One fear is that the task will not be completed to the potential that it would be if the manager did it. -Many tasks don't need to be done perfectly, they just need to be done -Delegating tasks frees up managers to other responsibilities. -Micromanaging may occur, but it is important to delegate all responsibility - Good managers need to trust their subordinates 2 Transfer: Gives the subordinates full authority over the budget, resources, and personnel needed to do the job. -To do the job effectively, it is important that the manager delegates all the necessary tools and resources that the manager would have themselves - Delegation to work, delegated authority must be commensurate with delegated responsibility. 3 Transfer: Occurs with delegation in transfer or accountability -In return, is accountable for getting the job done, Managers delegate their managerial authority and responsibility to subordinates in exchange for results.

Basic Departmentalization Structures

Departmentalization, a method of subdividing work and workers into separate organizational units that take responsibility for completing particular tasks 1. Functional departmentalization: organizes work and workers into separate units responsible for particular business functions or areas of expertise. For example, individuals organized by accountants, sales, marketing, production, HR. a. Advantages: i. Work will be done in high quality, because the individual will be working in a specialized area ii. Lowers cost by reducing duplication iii. Everyone is the same department have similar work experience/training, communication and coordination are less problematic for managers b. Disadvantages: i. Cross-department coordination may be difficult ii. Unit of business may prefer to do what's best for their department rather than whole iii. May lead to slower decision making and produce managers and workers with narrow experience and expertise 2. Product departmentalization: organizes work and workers into separate units responsible for producing particular products or services a. Advantages: i. Like FD, managers and workers are able to specialize in one area of expertise, however, the members working in the group may have different backgrounds creating more experience and diverse knowledge ii. Makes it easier for top managers to assess work-unit performance iii. Decision making should be fasters because managers are responsible for their one product or service iv. Fewer conflicts because they can be resolved/avoided in the smaller group b. Disadvantages: i. Duplication, often results in higher cost ii. Challenge of coordinating across the different product departments, difficult to standardize policies and products across the board 3. Customer departmentalization: organizes work and workers into separate units responsible for particular kinds of customers. a. Advantages: i. Focuses the organization on customers' needs rather than on products or business functions ii. Allows the company to specialize and adapt their products/services to customers' needs and problems b. Disadvantage: i. Leads to duplication ii. Difficult to achieve coordination across different departments iii. Emphasis on meeting customers' needs may outweigh the business's needs- may please customer but hurt company 4. Geographic departmentalization: Organizes work and workers into separate units responsible for doing business in a particular geographic area. a. Advantages: i. Helps companies respond to the demand of different markets ii. Reduce costs by locating unique organization resources closer to customers b. Disadvantage: i. Lead to duplication of resources ii. Coordination between department - extremely challenging with 1,000 miles apart 5. Matrix Departmentalization: hybrid structure in which two or more forms of departmentalization are used together - most common is product and functional forms, but others may be used. Several things distinguish matrix departmentalization from traditional forms- most employees report to two bosses, there is more cross-functional interaction, more coordination a. Advantages: i. Allows companies to manage in efficient large, complex tasks ii. Employees may be working to complete numerous projects iii. Pool of resources are available to carry out large tasks iv. Much more diverse set of expertise and experience b. Disadvantages: i. High level of coordination ii. Disagreements/misunderstandings about schedules, budgets, available resources, and availability of employees iii. Often many matrix structures evolve from a simple matrix, managers in different parts negotiate conflict and resources directly, to a complex matric, specialized matrix managers and departments are added to the organizational structure - who then help solve the conflict

Getting Funded

Equity- Investors give $ to run, do not expect initial payment to be repaid. Owners get profits and company shares. Debt- Creditors loan $ with interest, do not expect to own business. Awards from competitors: $ given as a gift from competition.

Stage 4 of Self Management Process

Evaluate and Reward Progress: Tip- Determine what you've accomplished and reward. Mistake- Reward too early, too late, or too much. Punish yourself, Rewards too big.

Experiential and Compression Innovation

Experiential- An approach to innovation that assumes a highly uncertain environment and uses intuition, flexible options, and hands on experience to reduce uncertainty and accelerate learning. Compression- An approach to innovation that assumes that incremental innovation can be planned using a series of steps and that compressing those steps can speed innovation

Value Curves

Factors of competition What customers consider when buying? Where competitors value each factor? Where is there open space?

Three Types of Control

Feedback Control- A mechanism for gathering information about performance deficiencies after they occur. - Monitor products and learn from past mistakes- Outputs Concurrent Control- A mechanism for gathering information about performance deficiencies as they occur, thereby eliminating or shortening the delay between performance and feedback. - Monitor process and adjust activities- Productive process and activity. Feedforward Control- A mechanism for monitioring performance inputs rather than outputs to prevent or minimize performance deficiencies before they occur. - Monitor inputs and anticipate problems- Inputs

Which of the following is an error managers make when leading change?

Holding one big meeting to announce the change

Confirmation Bias

Human understanding when it has once adopted an opinion draws all things else to support or agree with it. - Not wanting to be wrong.

Three types of interventions

Large System Interventions: - Sociotechnical Systems- An intervention designed to improve how well employee's use and adjust to the work technology used in an organization. - Survey feedback- An intervention that uses surveys to collect information from the members of the system, reports the results of that survey to the members, and then uses those results to develop action plans for improvement. Small Group Interventions: -Team building- an intervention designed to increase cohesion and cooperation of work group members - Unit goal setting- an intervention designed to help a work group establish short and long term goals. Person Focused Interventions: -Counseling/Coaching- An intervention designed so that a formal helper or coach listens to the managers or employees and advises them on how to deal with work or interpersonal problems. - Training- An intervention designed to provide individuals with knowledge, skills, or attitudes they need to become more effective at their jobs.

Line/Staff Authority

Line authority- right to command immediate subordinates in the chain of command Staff authority- right to advise but not command others who are not subordinates in the chain of command

SWOT Analysis

Looks at companies strengths, weaknesses, opportunities, and threats. -Strength- what you can do that other companies can't -Weakness- What you can not do - Opportunities- What you can contribute -Threats- What your competitor can do better.

Resistance to Change

Opposition to change resulting from self interest, misunderstanding and distrust, and a general intolerance for change.

Characteristics of Attractive foreign business culture

Positions the company for easy access to growing markets. -purchasing power- measured by comparing the relative cost of a standard set of g/s in different countries and by looking at global competition determined by the number and quality of companies in foreign market.

Stakeholder View

Primarily focus on longevity of the business -People that are affected- community, government, supplier, employees, customers, stockholders.

Shareholder View

Purpose of business is to maximize profits- Benefits stockholder. -Company can't make moral decisions, up to the people -Innovation is key

Firm Level Strategies (Red/Blue Sea)

Red Sea: Strategic moves in direct competition, attack in response, usually loses out - Rivalry between 2 companies offering similar products - Attack- move designed to reduce rivals market share or profits -Response- Countermove, designed to defend or improve company. Blue Sea: Entrepreneurship- movement to the blue sea (new product)

Team Leader Role and Responsibilities

Role: Responsible for facilitating team activities toward accomplishing a goal. Responsibilities: Help team members plan and schedule work, learn to solve problems, and work effectively with each other. Fostering good relationships and addressing problematic ones within their teams.

Stage 1 of Self Management Process

Self Assessment and Planning: Tip- Who am I now? Who do I want to be? What are my strengths? Where am I now? Mistake- Not having any standards, ignoring important parts of identity.

Stage 3 of Self Management Process

Self Control: Tips- What is important- produces desired result. What is urgent?- demand immediate attention. Mistake- Allowing negative emotions or habits to derail us. Environmental Control Tip- Proactively structure work environment to increase success. Mistake: Allow others to control time.

What to do when employees resist

Unfreeze- share over and over reasons why they want to change - empathize, communicate, and change. Explain- benefits about whats in it for them Champion- if people mistrust others motivations for the change they won't likely change. If there is a champion they are more likely to change. Opportunities for feedback, offer security, Educate, Don't rush

Lewin's Change Model

Unfreezing- Getting the people affected by change to believe that change is needed. Change Intervention- The process used to get workers and managers to change their behaviors and work practices Refreezing- Supporting and reinforcing new changes so they sick

Levels of Culture- Internal Environment

What happens within, how people think, feel, and behave. 1. Surface Level (Seen) - Symbolic artifacts - Behaviors- clothing environment 2. Expressed Values and Beliefs (Heard) - What people say - How decisions are made 3. Unconsciously Held Assumptions and Beliefs (Believed) - Beliefs and assumptions -Rarely discussed.

Creating a Sustainable Competitive Advantage

When a company cannot duplicate the value a firm is providing to a customer. -Valuable resources-improve efficiency and effectiveness. - Rare resources- not possessed by competing firms - Imperfectly imitated- resources that are impossible, costly, and difficult to duplicate. - Non sustainable resources- no other resources can replace them and produce similar value or competitive advantage.

What would be a benefit of organizing by function?

Work done by specialists

Errors Managers Make

•Not establishing a great enough sense of urgency. oPeople will feel a greater sense of urgency if a leader in the company makes a public, candid assessment of the company's problems and weaknesses. •Not creating a powerful enough coalition oChange has to be supported by a critical and growing group of people to build enough momentum to change an entire department, division, or company •Lacking a vision oA vision for change makes clear where a company or department is headed and why the change is occurring. •Under communicating the vision by a factor of ten oCompanies mistakenly hold just one meeting to announce the vision. Requires that top managers link everything the company does to the new vision and that they "walk the talk" by behaving in ways consistent with the vision. •Not removing obstacles to the new vision oThey leave formidable barriers to change in place by failing to redesign jobs, pay plans, and technology to support the new way of doing things •Not systematically planning for and creating short term wins oMost people don't have the discipline and patience to wait two years to see if the new change effort works. Change is threatening and uncomfortable, so people need to see an immediate payoff if they are to continue to support it. •Declaring victory too soon Managers typically declare victory right after the first large-scale success in the change process. Declaring victory too soon stops change efforts. •Anchoring changes in the corporation's culture oHave to directly show people that the changes have actually improved performance and to make sure that people who get promoted fit the new culture. If they don't it's a clear sign that the changes were only temporary.

Creative Work Environment Components

•Workplace cultures in which workers perceive that new ideas are welcomed, valued, and encouraged •Components -Organizational Encouragement • Occurs when management encourages risk taking and new ideas, supports and fairly evaluates new ideas, rewards and recognizes creativity, and encourages the sharing of new ideas throughout different parts of the company -Supervisory Encouragement • Occurs when supervisors provide clear goals, encourage oper interaction with subordinates, and actively support development teams work and ideas -Work Group Encouragement • Occurs when group members have diverse experience, education, and backgrounds and the group fosters mutual openness to ideas. -Freedom • Having autonomy over one's day to day work and a sense of ownership and control over one's ideas. -Lack of Organizational Impediments • Internal conflict and power struggles, rigid management structures, and a conservative bias toward the status quo can all discourage creativity. -Challenging Work • When it requires effort, demands attention and focus, and is perceived as important to others in the organization. Challenging work promotes creativity because it creates a rewarding psychology experience known as "flow".