MQM 220 Exam 3
Important provision of civil rights act, Title 7
1964 Prohibits discrimination based on sex, race, religion, or national origin.
Assumption
A behavior that stemmed from a belief held by a group that is no longer visible, but has become deeply embedded in the organization.
Return on equity
A measure of the rate of return on the ownership interest (shareholders' equity) of the common stock owners.
Strategic poisition
A place in an industry that a firm occupies by way of the products or services it offers and the methods it chooses to deliver them.
organic change
A process by which change emerges from individuals or teams as they innovate, solve problems, seek more effective ways to accomplish their work, react to large environmental shifts, or interact with others in cross-functional positions.
transformative change
A process in which change is radical or disruptive, typically in response to a major competitive threat and/or significant change in a firm's external or internal environments.
incremental change
A process in which small improvements or changes are made to processes and approaches on an ongoing basis.
planned change
A process where change efforts are planned and driven from corporate strategy departments or top-down directives.
Value chain analysis
A systematic way of examining all of the activities a firm performs and determining how they interact to form a source of competitive advantage.
gain-sharing
A team-based compensation structure that rewards teams based on the achievement of certain metrics associated with productivity, efficiency, or quality.
Great Man theory
A theory of leadership that explained leadership by examining the traits and characteristics of individuals considered to be historically great leaders.
Enviromental scanning
A tool that managers use to scan the business horizon for key events and trends that will affect the business in the future.
Trend Analysis
A tool where key variables are monitored and modeled to help predict a change that might occur in the environment.
Managerial Grid
A two-dimensional grid showing leaders' different levels of task-oriented and relations-oriented behavior, which results in particular styles of leadership.
Competitior
Any organization that creates goods or services targeted at a similar group of customers.
Leadership neutrilizers
Aspects of a situation that hinder a leader's ability to act a particular way.
leadership substitutes
Aspects of a situation that make leadership unnecessary.
3 objectives of charasimatic leader
Charismatic leaders are extremely self-confident in their abilities, possess a willingness to take personal risks, and usually adhere to a strong moral conviction to exercise their power positively for social benefit.Footnote
Financial Perspective
Choosing the financial measurements that are most important for reaching strategic goals.
disadvantage of group-based pay system
Consequently, some members of the group may not contribute their fair share, yet still receive the benefits of the overall team. This can lead to heightened tensions in the team if it is not properly addressed. In some cases, the overall performance of the group regresses to the average ability of the group, not to its highest ideal.Footnote When this happens, the group is less likely to benefit from the group compensation structure. Furthermore, shirked responsibility can alienate star performers, and they may be more inclined to look for another job.
outsourcing
Contracting with a firm outside the corporation to perform certain tasks or functions that the corporation used to do on its own.
Job sharing.
Employees may seek part-time work for many reasons, including the need to attend to childcare responsibilities or to care for an elderly or sick parent. By sharing the responsibilities of one job with an additional person, both parties can achieve the balance they need
In groups
Favored subordinates who are assigned more interesting tasks, given greater responsibility and authority, and receive more tangible rewards and more resources
business process perspective
Focuses on measurements that will improve a company's ability to serve and deliver value propositions to its customers.
Scenario Building
Forecasting the likely result that might occur when several events and stakeholders are linked together.
off the job training
Formal training can also be done off-the-job such as at a facility that is specifically designed to teach certain skills.Footnote For example, the airline industry has long used simulators to train pilots, and NASA has developed a virtual control tower that can simulate day or night at any airport in the world, any weather pattern, and the movement of up to 200 aircraft.Footnote Other forms of off-the-job training for management development may include formal education programs. Many companies are teaming up with community colleges to provide specially tailored corporate education to support their specific training agenda.Footnote
Telecommunicating
Given the increased sophistication of technology, telecommuting is becoming a more feasible option for many employees. Through telecommuting, employees spend part of their time working off-site (at home) and use e-mail and the Internet to stay in contact with the organization.
Learning and Growth Perspective
Identifies the infrastructure and skills needed to carry out business processes, interact with customers, and achieve long-term financial growth; it also helps to identify gaps in capabilities or resources.
sustainable technologies
Innovative forces that improve the performance of established products, along the dimensions of performance that mainstream customers in major markets have historically valued
Customer Perspective
Linking key customer-based metrics such as market share and retention to the financial performance of a firm.
External Fit
Matching a firm's structure, systems, human resources, and management practices to the competitive landscape Requires managers to match HR practices with a company's: Stage of growth Strategic objectives
Vertical Integration
Occurs when one corporation owns business units that make inputs for other business units in the same corporation.
SWOT analysis
One tool that has been useful in helping managers better understand their internal and external environments
what entities off most resistance to change
Organizations with poor brand images, lack of cash, or people without the necessary skills to create or thrive can cripple many change efforts, but at the same time, it is easier in these cases to establish a sense of urgency for change.
Advantages of external recruiting
R manager can then turn his or her attention to the external business landscape to benchmark its compensation and benefits offerings. Most positions are compensated based on the required combination of education, experience, and potential talent required or expected to perform a particular job. Firms often set compensation levels based on an external analysis of comparable positions in the marketplace. If a firm chooses to hire a worker from a competitor or another firm, it should expect to offer compensation that meets or exceeds the worker's current level.
what helps change leadesr build dissatisfaction
Some researchers have likened the creating of dissatisfaction to "unfreezing" an organization.Footnote Unfreezing can be very difficult because most people gravitate toward patterned behavior, especially when they have been successful in the past. One way to build dissatisfaction is to engage in benchmarking or internal and external performance/opportunity gap analyses. As we discussed in Chapter 10, with benchmarking, organizations compare their performance to that of other companies in the same or different industries that are "best in class." This generally results in a gap that can diffuse complacency and serve as a motivation for change.Footnote Other external motivations can be identified by scanning the competitive horizon—
out groups
Subordinates who are expected to simply comply with formal rules and do what is required of them; as a result, they receive the standard benefits of the job
activity-based costing (ABC)
The accounting system used to assess the specific cost components of producing a product or service.
Behavior
The actions and decisions of individual employees
core benefit of relations oriented leadershp
The complement to task-oriented behavior is relations-oriented behavior, characterized by the concern for interpersonal relationships, the value of workers as humans, and a strong commitment to the unit and its mission.Footnote Three main categories account for the most influential behaviors: Supporting subordinates: Developing subordinates: Recognizing work
Participation
The extent to which individuals engage in the process of generating solutions and articulating their opinions and perspectives.
Control Cycle
The four-stage process that provides the mechanisms and systems to monitor the transformation process, ensuring that outputs are produced to the desired quality, quantity, and specifications of an organization and its customers.
Globalization
The integration and interdependence of economic, technological, sociocultural, and political systems across diverse geographic regions.
on the job training
The most common formal training is on-the-job training, which is conducted on the work site and often led by an employee's supervisor.Footnote For certain positions, especially those that require adherence to specific regulations such as heavy equipment operation or the use of dangerous materials, tests are often administered to validate employee knowledge and compliance.
successful change leaders
The most successful leaders build momentum and gain support by expressing high expectations of others, behaving consistently with what they say, and empowering others to contribute to the vision.Footnote
Transactional leadership
The process by which a leader provides something to subordinates in return for something the subordinates want.
Strategic Control
The process of recalibrating or confirming a firm's strategy in light of changes in the external environment.
outputs
The products and/or services that an organization produces.
transformational leadership
The set of behaviors that leaders use to transform or change their organization and individuals for the better.
Variable work schedule
Traditional work schedules that start at 9 am and end at 5 pm five days a week can make it difficult for employees to attend to routine personal business (e.g., doctor appointments and parent-teacher conferences). To address this, a variable work schedule that includes working 10-hour days for 4 days or working more than 8 hours for 4 days and less than 8 hours on a fifth day might be appropriate.
Strategic Perspective
We start with the big picture strategic perspective to define the company's position in the global business ecosystem. Once the strategy has been developed, it is important to move to execution and delivery. That's where organizational structure, design processes, and performance management come into play. What are the best structures and processes to support the desired strategic objectives? What resources are available? What resources must be acquired or developed? How can a business sustain its relevance in a changing contextual landscape? The answers to these questions define the organizational perspective. Defensible strategies and efficient organizational structures are the result of individual action and leadership. Ultimately, managers must have the strategic abilities needed to recognize a situation, the social skills to know what to do in that situation, and the behavioral skills to act.Footnote
advantages of realistic job previews
When an organization provides information to job candidates that highlights the most important conditions of a job including its positive and negative aspects.
Techinical skills of leadership
While technical skills refer to a leader's knowledge about an organization and job-related activities, interpersonal skills refer to a leader's ability to interact with others.
Financial perspectives of balanced scorecard
While the combination of financial and nonfinancial measurements is an important aspect of the balanced scorecard, the real advantage comes from identifying two categories of measurements: outcomes and drivers. Outcomes monitor past success, and drivers predict future success. Outcomes are generic measurements commonly used in business, such as profitability, market share, customer satisfaction, customer retention, and employee skills.Footnote Drivers are more unique to company strategy and are the key factors in predicting future success.Footnote
Ultimate Goal of TQM
With the ultimate goal of fulfilling customer needs, total quality management (TQM) has gained popularity not only in the United States but also around the world over the past several decades.Footnote Higher quality is one of the most important requirements for long-term success in many industries because it reduces errors; thus, rework and costs also are reduced.Footnote
informal training
coaching and mentoring
first step in change process
dissatisfaction of status quo...provides the energy necessary for breaking organizational inertia and helps create the motivation for change. Creating dissatisfaction with the status quo helps to free people and organizations from complacency or inertia.
What are requirements for HR to become a competitive advantage
ess. Although many CEOs do not plan for their future talent needs, developing a long-term HR strategy can provide the company with a strong competitive advantage, especially in environments where talented resources are scarce.Footnote This is especially important for technology companies that depend on employees with unique or specialized skills. Planning is also particularly important as firms expand. For example, if a department or division becomes too large, the company may decide to divide it into two different departments or divisions. The HR function can help by working with the company leadership to design the new organizational structure.
Strategic Review Process
he process by which senior leaders of a corporation meet with business unit managers to review progress toward specific goals.
part of leader-member exchange theory (LMX)
in and out groups
Six Sigma
is a disciplined, quantitative approach to improve cycle time, reduce costs, and eliminate waste with a technical goal of 3.4 defects per million (six standard deviations from the mean).F
Flexible work schedule
ke variable work schedules, flexible work schedules can affect the times that employees begin and end work each day. Yet unlike varied work schedules, flexible work schedules are less structured and give employees more control over their work times. Usually, flexible work schedules account for flexible time and core time. During core time, employees must be at their workstation, but during flexible time, they can choose their own schedule. For example, employees can start work early and leave in the middle of the afternoon; start late morning and work until late afternoon; or start early in the morning, take a long lunch break, and work until late afternoon.Footnote
when making plans for training you should first
needs assessment...A process by which an organization outlines what type of training needs to be done and who is best positioned to deliver it.
formal training
off the job and on the job
total quality management (TQM
s satisfying customer needs through a set of four reinforcing principles: customer focus, process focus, teamwork and participation, and continuous improvement.Footnote Formal measurement tools such as sampling, statistical analysis, benchmarking, and run charts are typically used.Footnote
most common leadership trait
self confidence
Formula for change equation
where D is Dissatisfaction with the status quo, M is a new Model for the organization, and P is the Process for change. The combination of these forces for change must be greater than the Resistance to Change (Rc) and Cost of Change (Cc) that employees experience.Footnote
DMAIC
which stands for define, measure, analyze, improve, and control. It entails defining a problem precisely, measuring to clarify the process, analyzing the process to identify root problems, improving the process by considering several solutions, and controlling through ongoing measurements to ensure the problem does not recur. Companies train employees who become "black belts" and are responsible for applying DMAIC to specific projects over a predetermined span of time.Footnote