MGMT 309
Focus
concentrates on a specific regional market, product line, or group of buyers
Porter's Generic Strategies
cost leadership, differentiation, cost focus, differentiation focus
Computer aided manufacturing
design moves smoothly to production
Cellular Layouts
families of products can follow similar flow paths. In one section they build one part and in another, the other part.
Manufacturing
form of business that combines and transforms resources into tangible outcomes.
Computer assisted manufacturing (CAD)
uses computers to design parts and complete products and to simulate performance so that prototypes need not be constructed
Strategic management
way of approaching business opportunities and challenges. It is an ongoing process aimed to achieve effective strategies.
Maslow's Hierarchy of Needs
(level 1) Physiological Needs, (level 2) Safety and Security, (level 3) Relationships, Love and Affection, (level 4) Self Esteem, (level 5) Self Actualization
GE Business Screen
- Helps determine asset allocation -
BCG Matrix
- Stars are businesses that have the largest share of rapidly growing market - Cash cows are business that have large market share and low growth - Dogs are business that have low market outlook and low market share -
Porter-Lawler Extension of Expectancy Theory
-assumptions: if performance results in equitable and fair rewards, people will be more satisfied. high performance can lead to rewards and high satisfaction.
distinctive competence
1. may depend on historical circumstances that others cannot replicate 2. its nature and character might not be well understood 3. Complex social phenomena that is difficult to recreate
Unrelated diversification
1. stable performance overtime 2. Resource allocation advantages. Can place resources where potential is. But... 1. corp. level managers are not as useful b/c broadness 2. competitive disadvantage, w/o synergies
Percentage interest needed to unionize
30%
Sustained competitive advantage
A company's strategies enable it to maintain above-average profitability for a number of years after imitations have ceased.
Workers' compensation
A form of insurance paid by the employer providing cash benefits to workers injured or disabled in the course of employment.
Statistical Quality Control(SQC)
A process used to continually monitor all phases of the production process. Acceptance sampling involves sampling finished goods to ensure quality. In-process sampling is another method in SQC.
Flexible
Allows personnel to have some control over their work schedules but have two work times: core and flex times. Core is hours of a workday that the employee must work.
Robot
Any artificial device that can perform functions ordinarily thought to be appropriate for human beings
related diversification
Basis: Similar tech, distribution, marketing, reputation, or customers. 1. reduced economic risk 2. reduce overhead costs by managing 3. Can exploit multiple strengths
Purchasing Management
Buying materials and resources needed to produce products and services
Purchasing Management (procurement)
Buying materials and resources needed to produce products and services
Computer integrated manufacturing
CAD and CAM are linked and computer networks automatically adjust machine placements and settings to enhance both the complexity and flexibility of scheduling
Transnational Strategy
Carefully assigns responsibilities for various tasks to the unit best fit. Can be centralized or decentralized.
Capacity
Choosing the amount of products, services, or both that can be produced by the organization. - risky because of future demand uncertainty
Multidomestic Strategies
Collection of relatively independent subsidiaries that focus on specific domestic markets. Customers in every country are different. Effective when: Costs are low, clear differences among national markets, economic scale is low
Organizational Importance of Quality
Competition, Productivity, Costs
GE Business Screen
Competitive Position: -Market Share, Tech know how, product quality, service network, price competitiveness, operating costs Industry attractiveness: market growth, Market size, Capital Requirements, competitive intensity
Strategy
Comprehensive plan for accomplishing an organizations goals
Home Replication Strategy
Core competency or firm specific advantage taken to foreign markets
Wage-level
Decision to pay labor rates above, below, or commensurate with going rates in the geographic region is a wage-level decision
Total Quality Management
Efforts by the organization to make quality a guiding factor in everything the org. does. -Strategic Commitment: Objective goal and not abstract, and quality carries costs so investment is needed by top managers. -Employee involvement: make person doing the job responsible for making sure it is done right -Technology: Equipment to make sure precision and consistency are present -Materials: Quality of materials used -Methods: Methodology can improve product and service quality.
Quality
Features of a product or service that bear on its ability to satisfy needs. Eight Dimensions: -Performance: operating characteristic -Features: supplements -Reliability: probability of malfunction -Conformance: Meet standards -Durability: Measure of product life -Serviceability: Speed and ease of repair -Aesthetics: looks, feels, tastes, smells -Perceived Quality: Seen by customer
Differentiation Strategy
Finance to allow funds to encourage creativity and innovation Manufacturing must keep inventory on hand and emphasize quality
Overall Cost Leadership
Finance: Keep costs low and reduce as much as possible Manufacturing: Increase volume and reduce cost per unit
Process Layout
Hospitals or custom piece furniture. Product goes to different stations across the facility to develop.
Product-Service Mix
How many and what kinds of products or services a company offers
Job enrichment
Increase # of tasks and control
Job Enlargement
Increasing amount of tasks
Prospective
Innovative and growth oriented. Encourage creativity and flexibility, adopt decentralized organization structure, Middle and lower level managers have increased responsibility.
Product Layout
Large quantities of a single product work best with this layout. Assembly lines.
Facilities
Location and layout. Physical locations where products or services are created, stored, and distributed
Globalization
Macro: - property ownership arrangements vary widely - natural resources vary, infrastructure, government Behavioral: - culture and national boundaries Ethics and social responsibility
Operations Management
Managerial activities used by an organization to transform resource inputs into products or services Bad: - lower quality and productivity Good: - Competitiveness and performance as well as enhancing quality and productivity
Inventory control
Managing orgs. raw materials, work in progress, finished goods and products in transit.
Traditional approach
Money is primary motivation for workers
Human Resource Approach
Mutual contributions between organization and person.
ERG theory of motivation
Peoples needs are grouped into three possible categories: existence, relatedness, and growth.
Automation
Process fully or fully executed by machines
Recruiting
Process of attracting qualified people to apply for positions
Selecting
Process of choosing a capable or the most capable job candidate
Supply Chain Management
Process of managing operations control, resource acquisition and purchasing, and inventory so as to improve overall efficiency and effectiveness.
Miles and Snow Typology
Prospector strategy, Defender strategy, Analyzer strategy, Reactor strategy
Defender
Protects current market hold and stability. Downplay creativity and innovation, lower costs, and improve performance.
Scope
Range of markets in which an organization will compete in.
Integrating Framework
Recognize the interdependence of units within the organization. This framework suggests managers use all available tools properly and in accordance to each situation by taking into consideration: Motivation, Leadership, Communication, and Group Processes.
Training (HRM)
Refers to teaching operational or technical employees how to do the job which they were hired
Wage structure
Relative value that jobs contribute to orgs. performance
Flexible Manufacturing Systems
Robotic units, assembly lines, and robotic carts that move material from one system to another
Leadership substitute
Routineness, availability of feedback and intrinsic satisfaction are all substitutes for leadership
Technology
Set of processes and systems used by organizations to convert resources into products or services.
Human Relations approach
Social aspects of work help motivate workers such as feeling useful and important.
BCG Matrix
Stars: High Growth High Market share Cash Cows: High Market share, low growth Dogs: low market share, low growth Question marks: High growth, low market share
Systems Perspective
Stepping back to view an entire process to see how each component connects with the others. Inputs, process, outputs, feedback. - Transformation process: Tech or managerial processes that convert inputs to outputs
Job Analysis
Systematic analysis of the organizations jobs
Predictive Valudation
Take test before being hired then review test scores to performance a year later
Content Validation
Take test to qualify job-fit
Development (HRM)
Teaching managers and professionals the skills needed for both present and future jobs
Value-added analysis
The evaluation of all work activities, material flows, and paperwork to determine the value they add for customers.
Introduction Stage
The initial stage of a product's life cycle; its first appearance in the marketplace, when sales start at zero and profits are negative
Leadership neutralizer
The need for a leadership role being removed
Cycle time
Time needed by org. to develop, make, and distribute products or services.
Employee information system or skills inventory
Track internal supply of people and their skills
Contingency Perspective
Universal theories cannot be applied because each organization is unique.
Fixed-position Layout
Useful when creating very large and complex products. Product does not move and workers work around the product.
Benchmarking
a process by which a company compares its performance with that of high-performing organizations
Six Sigma
a rigorous statistical analysis process that reduces defects in manufacturing and service-related processes
Political Behavior
actions not officially sanctioned by an organization that are taken to influence others in order to meet one's personal goals
Inventory Control
activities to ensure that goods are always available to meet customers' demands
Just-in-time method
an inventory system that has necessary materials arriving as soon as they are needed so that the production process is not interrupted
Emergent Strategy
any unplanned strategic initiative bubbling up from the bottom of the organization
Analyzer
holds current market but has moderate emphasis on innovation tight finance but high flexibility, efficient production, and creativity with low costs.
Forecasting
human resource demand and supply involves estimating the organizations future need
Replacement Chart
lists each position and who should be considered for the position
Outsourcing
obtain (goods or a service) from an outside or foreign supplier, especially in place of an internal source.
Effective strategies
promote superior alignment between the organization and its environment
Reactor
reacts to the environment and doesn't have a clear strategy
Maturity Stage
stage of the product life cycle when industry sales reach their peak, so firms try to rejuvenate their products by adding new features or repositioning them
Decline Stage
stage of the product life cycle when sales decline and the product eventually exits the market
Growth Stage
stage of the product life cycle when the product gains acceptance, demand and sales increase, and competitors emerge in the product category
Two-Factor Theory of Motivation
survey of 200 accountants and engineers about what satisfied them and motivated them. Motivation and Hygiene Factors.
single-product strategy
survival is dependent on the single product.
Aggregate Productivity
the total level of productivity for a country
Porter's Five Forces
threat of entry, threat of substitute, supplier power, buyer power, and competitive rivalry