Test 3 Management
three fundamental organizational communication topics:
(1) formal organizational communication, (2) informal organizational communication (3) the encouragement of formal organizational communication
Variable budget
(also known as a flexible budget) is one that outlines the levels of resources to be allocated for each organizational activity according to the level of production within the organization. automatically indicates an increase in the amount of resources allocated for various organizational activities when production levels go up and a decrease when production goes down
Decoder/destination
(destination) is the person or persons in the interpersonal communication situation with whom the source is attempting to share information.
Source/encoder
(source) is the person in the interpersonal communication situation who originates and encodes information to be shared with others.
facts about grapevine
- 70 percent of all communication in organizations flows along the organizational grapevine - Carry great amounts of communication and carry it at rapid speeds. - Employees commonly cite the company grapevine as the most reliable and credible source of information about company events.
Strategies, systems, and processes
- A strategy is a plan of action. - A system is a particular linking of organizational components that facilitates carrying out a process. - A process is a flow of interrelated events toward a goal, purpose, or end. an effective and efficient operations manager is skilled at all three Strategies create interlocking systems and processes when they are comprehensive, functional, and dynamic—that is, when they designate responsibility and provide criteria for measuring output.
purpose of strategies for motivating organization members.
- Each strategy is aimed at satisfying subordinates' needs (consistent with the descriptions of human needs in Maslow's hierarchy, Alderfer's ERG theory, Argyris's maturity-immaturity continuum, and McClelland's acquired needs theory) through appropriate organizational behavior no single strategy will always be more effective for a manager than any other. --> combination of strategies is most effective
advantages of flextime
- Improved employee attitude and morale - Accommodation of working parents - Decreased tardiness - Fewer commuting problems—workers can avoid congested streets and highways - Accommodation of those who wish to arrive at work before normal workday interruptions begin - Increased production - Facilitation of employees' scheduling of medical, dental, and other types of appointments - Accommodation of leisure-time activities of employees - Decreased absenteeism - Decreased turnover
disadvantages of flextime
- Lack of supervision during some hours of work - Key people unavailable at certain times - Understaffing at times - Problem of accommodating employees whose output is the input for other employees - Employee abuse of flextime program - Difficulty in planning work schedules - Problem of keeping track of hours worked or accumulated - Inability to schedule meetings at convenient times - Inability to coordinate projects
theories for identifying all human needs
- Maslow's hierarchy of needs - Alderfer's ERG theory - Argyris's maturity-immaturity continuum - McClelland's acquired needs theory
@ people-oriented guidelines
- Rephrasing ideas already expressed - Bringing all members into active participation - Stimulating further thought by members
characteristics of quality circles
- circle usually has fewer than eight members - circle leader is not necessarily the members' supervisor - Members may be workers on the project and/or outsiders. - focus on operational problems rather than on interpersonal ones. - The problems discussed in the quality circle may be assigned by management or uncovered by the group itself.
effective teams
- come up with innovative ideas, accomplish their goals, and adapt to change when necessary - individual members are highly committed both to the team and to organizational goals - highly valued by upper management and recognized and rewarded for their accomplishments
Applying modification programs
- effective feedback system is crucial -also applied to cost control in organizations ingredients of successful behavior modification programs: 1) Giving different kinds of rewards to different workers according to the quality of their performances 2) Telling workers that what they are doing is wrong 3) Punishing workers privately to avoid embarrassing them in front of others 4) Always giving rewards and punishments that are earned to emphasize that management is serious about its behavior modification efforts
concerns about maslows hierarchy
- it has no research base - it may not accurately reflect basic human needs - it is questionable whether human needs can be neatly arranged in such a hierarchy
two factors may adversely influence the accuracy of an entrepreneur's risk perceptions
- law of small numbers - Illusion of control
weakness of series
- messages tend to become distorted as the length of the series increases. - message details may be omitted, altered, or added in a serial transmission. - can also influence morale, the emergence of a leader, the degree to which individuals involved in the transmissions are organized, and these individuals' efficiency
three types of teams commonly found in today's organizations:
- problem-solving teams - self-managed team - cross-functional teams
What makes committees successful
- procedural steps - people-oriented guidelines - avoid group think
@ procedural steps
--> increase the probability that a committee will be successful: - committee's goals should be clearly defined - committee's authority should be specified. - optimum size of the committee should be determined (5-10) - chairperson should be selected on the basis of his or her ability to run an efficient meeting - Appointing a permanent secretary - agenda and all supporting material for the meeting should be distributed before the meeting takes place - Meetings should start on time, and their ending time should be announced at the outset.
@ Organization-related steps to building an effective team
1) Building a stable overall organization or company structure that team members view as secure 2) Becoming involved in team events and demonstrating interest in team progress and functioning 3) Properly rewarding and recognizing teams for their accomplishments 4) Setting stable goals and priorities for the team
different strategies to build trust within groups
1) COMMUNICATE OFTEN TO TEAM MEMBERS 2) SHOW RESPECT FOR TEAM MEMBERS 3) BE FAIR TO TEAM 4) BE PREDICTABLE 5) DEMONSTRATE COMPETENCE
Characteristics of JIT
1) Closeness of suppliers 2) High quality of materials purchased from suppliers 3) Well-organized receiving and handling of materials purchased from suppliers 4) Strong management commitment
@ task-related steps: to building an effective team
1) Developing clear objectives, directions, and project plans for the team 2) Providing proper technical direction and leadership for the team 3) Establishing autonomy for the team and challenging work within the team 4) Appointing experienced and qualified team personnel 5) Encouraging team involvement 6) Building visibility within the organization for the team's work
traditional strategies for increasing productivity
1) Effectiveness of the organizational workforce through training 2) The production process through automation 3) Product design to make products easier to assemble 4) The production facility by purchasing more modern equipment 5) The quality of the workers hired to fill open positions
The general cost control process has four stages:
1) Establishing standard or planned cost amounts 2) Measuring actual costs incurred 3) Comparing planned costs to incurred costs 4) Making changes to reduce actual costs to planned costs when necessary
To be a successful interpersonal communicator, a manager must understand the following:
1) How interpersonal communication works 2) The relationship between feedback and interpersonal communication 3) The importance of verbal versus nonverbal interpersonal communication
7 strategies for motivating organization members
1) Managerial communication 2) Theory X and Theory Y 3) Job design 4) Behavior modification 5) Likert's management systems 6) Monetary incentives 7) Nonmonetary incentives
use ratio analysis in three ways to control an organization:
1) Managers should evaluate all ratios simultaneously 2) Managers should compare computed values for ratios in a specific organization with the values of industry averages for those ratios. 3) Managers' use of ratios should incorporate trend analysis.
three steps of the controlling process
1) Measuring performance 2) Comparing measured performance to standards 3) Taking corrective action
group that reaches maximum maturity and effectiveness is characterized by the following traits in its members:
1) Members function as a unit 2) Members participate effectively in group effort 3) Members are oriented toward a single goal 4) Members have the equipment, tools, and skills necessary to attain the group's goals 5) Members ask and receive suggestions, opinions, and information from one another
Four important theories describe how motivation occurs:
1) Needs-goal theory 2) Vroom expectancy theory 3) Equity theory 4) Porter-Lawler theory - build on one another to furnish a description of the motivation process that begins at a relatively simple and easily understood level and culminates at a somewhat more intricate and realistic level. - imply that an understanding of motivation is based on an understanding of human needs
three key notions of operations management
1) Operations management involves managers—people who get things done by working with or through other people. 2) Operations management takes place within the context of the objectives and policies that drive the organization's strategic plans. 3) The criteria for judging the actions taken as a result of operations management are standards for effectiveness and efficiency
@ Benefits of informal group membership
1) Perpetuation of social and cultural values that group members consider important 2) Status and social satisfaction that people might not enjoy without group membership 3) Increased ease of communication among group members 4) Increased desirability of the overall work environment
Pitfalls of budgets
1) Placing too much emphasis on relatively insignificant organizational expenses—managers should allocate more time for dealing with significant organizational expenses and less time for dealing with relatively insignificant organizational expense 2) Increasing budgeted expenses year after year without adequate information—It does not necessarily follow that items contained in last year's budget should be increased this year 3) Ignoring the fact that budgets must be changed periodically— recognize that factors such as costs of materials, newly developed technology, and product demand change constantly and that budgets must be reviewed and modified periodically in response to those changes.
"10 commandments of good communication"
1) Seek to clarify your ideas before communicating 2) Examine the true purpose of each communication— 3) Consider the total physical and human setting whenever youCommunicate 4) Consult with others, when appropriate, in planning communications 5) Be mindful of the overtones while you communicate rather than merely the basic content of your message 6) Take the opportunity, when it arises, to convey something of help or value to the receiver 7) Follow up your communication 8) Communicate for tomorrow as well as today 9) Be sure your actions support your communication 10) seek not only to be understood, but also to understand—be a good listener
Communication microbarrier examles
1) Source's view of the destination— The destination can sense the source's attitudes, which often blocks successful communication (negative attitudes/feelings). 2) Message interference— Minimize: communicate only when have total attention 3) Destination's view of the source— Minimize: consider the worth of messages transmitted to them independently of their personal attitudes toward the source. 4) Perception To minimize: send messages with precise meanings 5) Multimeaning words— Minimize: manager should not assume that a word means the same thing to all the people who use it
other strategies to encourage the flow of formal organizational communication
1) Support the flow of clear and concise statements through formal communication channels. 2) Ensure that all organization members have free access to formal communication channels. 3) Assign specific communication responsibilities to the staff personnel who could be of enormous help to line personnel in spreading important information throughout the organization. 4) Make sure that the leaders sending messages are trusted by the workforce
Stages of formal development for group learning to use resources
1) The acceptance stage --> is reached only after this initial mistrust dwindles and the group has been transformed into one characterized by mutual trust and acceptance. 2) Communication and Decision-making stage - group members are better able to communicate frankly with one another. - frank communication provides the basis for establishing and using an effective group decision-making mechanism. 3) group solidarity stage - members become more involved in group activities and cooperate rather than compete with one another - members find belonging to the group extremely satisfying and are committed to enhancing the group's overall success. 4) group control stage - group members attempt to maximize the group's success by matching individual abilities with group activities and by assisting one another. - Flexibility and informality usually characterize this stage.
Communication macrobarriers examples
1) The increasing need for information (because society is changing)— overloads communication networks, thereby distorting communication - dont overloaded members → Only information critical to the performance of their jobs should be transmitted to them. 2) The need for increasingly complex information (because rapid technology advances)— Minimize by simple communication and adequate training 3) The reality that people in the United States are increasingly coming into contact with people who use languages other than English— - Minimize by familiarity with language and culture - Formal knowledge of a foreign language is of little value unless the individual also knows which words, phrases, and actions are culturally acceptable 4) The constant need to learn new concepts, which cuts down on the time available for communication—
four most common grapevine patterns as outlined by Davis
1) The single-strand grapevine—A tells B, who tells C, who tells D, and so on --> tends to distort messages more than any other. 2) The gossip grapevine—A informs everyone else on the grapevine. 3) The probability grapevine—A communicates randomly—for example, to F and D. F and D then continue to inform other grapevine members in the same way. 4) The cluster grapevine—A selects and tells C, D, and F. F selects and tells I and B, and B selects and tells J. --> Information travels only to selected individual
@ committees are established for four major reasons:
1) To allow organization members to exchange ideas 2) To generate suggestions and recommendations that can be offered to other organizational units 3) To develop new ideas for solving existing organizational problems 4) To assist in the development of organizational policies
@ People-related steps to building an effective team
1) Trying to make the team's work satisfying 2) Developing mutual trust among team members and between the team and management 3) Building good communication—from management to the team as well as between team members 4) Minimizing unresolved conflicts and power struggles within the team 5) Dealing effectively with threats toward and within the team 6) Building the perception that the jobs of team members are secure
successfully offering high-quality goods and services to the marketplace typically results in three important ends for the organization:
1) a positive company image - high-quality products generally result in a positive company image, which in turn leads to numerous organizational benefits 2) lower costs and higher market share - Activities that support product quality also benefit the organization by yielding lower costs and greater market share 3) decreased product liability costs - typical result of improved products and product performance is lower product liability costs
5 staged of group think
1) antecedents, describes what precursors are associated with the development of groupthink. For example, a group with a high level of cohesiveness is likely to be susceptible to groupthink. 2) concurrence seeking, occurs when a group member agrees with the entire group's position even though the group member privately opposes the entire group's position 3) symptoms of groupthink, occurs as group members feel pressured to conform and censor their own ideas. 4) decision-making defects, occurs when group members fail to make effective decisions. An example of decision-making defects involves a group not collecting the needed information to make an effective decision. 5) poor decision outcomes, occurs when the group performs poorly.
when individuals believe they have been treated unfairly in comparison with their coworkers, they will react in one of the following ways to try to right the inequity
1) change their work outputs to better match the rewards they are receiving. - If they believe they are being paid too little, they will decrease their work outputs; if they believe they are being paid more than their coworkers, they will increase their work outputs to match their rewards. 2) try to change the compensation they receive for their work by asking for a raise or by taking legal action. 3) try to change their own perceptions of the inequality - distorting the status of their jobs or by rationalizing away the inequity. 4)leave the situation rather than try to change it
Five factors that help determine whether individuals are able to identify opportunities
1) entrepreneurial alertness: 2) information asymmetry 3) social networks 4) cross-cultural experience 5) the ability to establish means-ends relationships:
@ Why managers should use committees
1) improve the quality of decision making. 2) encourage the expression of honest opinions. 3) tend to increase organization members' participation in decision making and thereby enhance the chances of widespread support of decisions. 4) ensure the representation of important groups in the decision-making process
five different types of entrepreneurial opportunities
1) opportunities arise from the creation of new products or services. - opportunity exists in the form of convincing people to use 2) opportunities arise from the discovery of new geographical markets in which new customers will appreciate the new product or service. - American has toys already so then sell them to china 3) opportunities may arise from the creation or discovery of new raw materials or after discovering alternative uses for existing raw materials. - ethanol provides farmers with another use for the corn they grow. 4) opportunities may emerge from the discovery of new methods of production. - allow entrepreneurs to produce goods or services at lower costs, which allows the entrepreneurs to satisfy the needs of customers more effectively. 5) opportunities may arise from new methods of organizing - ex internet
why managers should study groups
1) the most common ingredient of all organizations is people 2) the most common technique for accomplishing work through people is dividing them into work groups. 3) Groups exist in all kinds of organizations. 4) Groups inevitably form in all facets of organizational existence. 5) Groups can cause either desirable or undesirable consequences within the organization. 6) understanding of groups can help managers increase the probability that the groups with which they work will cause desirable consequences within the organization.
algebraic break-even analysis
1) variable costs associated with producing each unit must be subtracted from the price at which each unit will sell. The purpose of this calculation is to determine how much of the selling price of each unit sold can go toward covering total fixed costs incurred from producing all units. 2) the remainder calculated in the first step must be divided into total fixed costs. The purpose of this calculation is to determine how many units must be produced and sold to cover fixed costs. This number of units is the break-even point for the organization.
Several factors can help entrepreneurs decide whether they should exploit an opportunity
1) when they believe that customers will value their new product or service → provide market demand (helps entrepreneurs earn the resources (i.e., profits) necessary to support the opportunity exploitation) 2) when they perceive that they have the support of important stakeholders. - stakeholders will help ensure the success of the entrepreneur pursuing the opportunity - difficult for entrepreneurs to succeed if they do not have the support of important stakeholders. 3) when they perceive that their management team is capable. - Qualified management teams bring resources (i.e., ability, knowledge, information) to the opportunity that are likely to enhance the prospects of the opportunity
Ten Commandments for Being a Good Listener
1.Stop talking! 2.Put the talker at ease. (This is often called establishing a permissive environment.) 3. Show the talker that you want to listen. 4.Remove distractions. 5. Empathize with the talker. 6. Be patient. (dont interrupt or walk away) 7. Hold your temper. 8. Go easy on argument and criticism. 9. Ask questions. 10. Stop talking!
The signal
A message that has been transmitted from one person to another
relationship between innovation and creativity
An organization that is creative but not innovative has a fertile source of good ideas, but it lacks the ability to make those ideas tangible. An organization that is innovative but not creative has the ability to turn ideas into tangible benefits, but it lacks good ideas in the first place managers should strive to build organizations that are a source of sound ideas and that are also capable of turning the ideas into tangible benefits for the organization.
reinforcements (rewards)
Anything that increases performance Negative reinforcement: is a reward that consists of the elimination of an undesirable consequence of behavior.
Advantages of algebraic and graphic break-even methods
Both result in the same break-even point but processes used to arrive at this point are quite different. for a manager who desires a quick yet accurate determination of a break-even point, the algebraic method generally suffices For a manager who wants a more complete picture of the cumulative relationships among the break-even point, fixed costs, and escalating variable costs, the graphic break-even method is more useful.
1. Managerial communication
Effective manager-subordinate communication can satisfy basic human needs such as recognition, a sense of belonging, and security Rule: managers should strive to communicate often with other organization members, not only because communication is the primary means of conducting organizational activities but also because communication is a basic tool for satisfying the human needs of organization members
Creative ideas based on TQM Expertise
Expertise in TQM—understanding TQM principles—can serve as a foundation for generating creative ideas in organizations an idea that may seem new and creative in one organization may not be new and creative in another because it has already been considered.
@ Productivity standards
How much various segments of the organization should produce is the focus of these standards. best ways to convince organization members to commit themselves to increasing company productivity is simply to treat them with dignity and make them feel part of the GE team.
Newer job strategies
Job enrichment flextime
The ratios available to managers can be divided into four categories:
Profitability ratios - Productivity of assets - Profit after taxes/total assets Liquidity ratios - Short-term solvency - current assets/current liabilities Activity ratios - Efficiency of inventory management - sales/inventory Leverage ratios - How a company finances itself total debt/total assets
Top 10 most innovative companies
Salesforce Tesla Motors Amazon.com Shanghai RAAS Blood Products Netflix Incyte Hindustan Unilever Asian Paints Naver Regeneron Pharmaceuticals
@ Personnel development standards
Standards in this area include the type of training programs that GE personnel should undergo to expand their skill sets. commitment to sophisticated training technology → seriousness of personnel development standards
periodic vs continual activities
The distinction between periodic activities and continual activities involves the relative frequency of their performance: Periodic activities are performed from time to time continual activities are performed essentially without interruption
kanban
a Japanese term referring to purchasing raw materials by using a special ordering form.
@ "no rejects" philosophy.
a philosophy is not economically feasible for most mass-produced products. What is possible is training employees to approach production with a "do not make the same mistake" mind-set. Mistakes are costly because detecting defective products in the final quality control inspection is expensive. Emphasizing quality in the early stages—during product and process design—will reduce rejects and production costs.
Zero-base budgeting
a planning and budgeting process requires managers to justify their entire budget request in detail rather than simply refer to budget amounts established in previous years.
Alderfer's ERG Theory
an explanation of human needs that divides them into three basic types: existence needs, relatedness needs, and growth needs. movement in his hierarchy of human needs is not always upward. --> people sometimes activate their higher-level needs before they have completely satisfied all of their lower-level needs
three primary sources of external capital for entrepreneurs
angel investors venture capitalists bank financing
Differences between Venture capitalists and Angel investors
angel investors, venture capitalists make fewer investments, but those investments are often larger than the investments made by angel investors. venture capitalists typically focus on a small number of industries, whereas angel investors tend not to focus on particular industries angel investors typically provide the initial financing to start-up ventures, and venture capitalists provide additional capital as the new venture becomes established.
organizational resources
are all the assets available to a manager to generate products
Communication macrobarriers definition
are factors hindering successful communication that relate primarily to the communication environment and to the larger world in which communication takes place.
Venture capitalists
are firms that raise money from investors and then use this money to make investments in new firms.
Hygiene, or maintenance, factors
are items that influence the degree of job dissatisfaction. - relate to the work environment - when the hygiene factors of a particular job situation are undesirable, organization members will become dissatisfied. - Making these factors more desirable will rarely motivate people to do a better job, but it will keep them from becoming dissatisfied 1. Company policy and administration 2. Supervision 3. Relationship with supervisor 4. Relationship with peers 5. Working conditions 6. Salary 7. Relationship with subordinates
Motivating factors (or motivators)
are items that influence the degree of job satisfaction. - relate to the work itself - when the motivating factors of a particular job situation are compelling, employees usually are motivated to do a better job. 1. Opportunity for achievement 2. Opportunity for recognition 3. Work itself 4. Responsibility 5. Working conditions 6. Personal growth
@ Skim: Work measurement methods
are operational tools that are used to establish labor standards.
@ Skim: Motion-study techniques
are operational tools that are used to improve productivity.
Similarities between Venture capitalists and Angel investors
are sources that entrepreneurs may use to fund new ventures have an impact on innovation rates in equivalent ways within entrepreneurial firms both angel investors and venture capitalists provide money to entrepreneurs and in return receive a portion of the firm's equity
products
are various goods or services aimed at meeting human needs
Angel investors
are wealthy individuals who provide capital to new companies an individual who, in exchange for equity, gives money to an entrepreneur to provide funding for an opportunity.
Best conditions for JIT
best in companies that manufacture relatively standardized products that experience consistent demand.
@ subsystem
can be viewed as a subsystem of the overall management system purpose of this subsystem is to help managers enhance the success of the overall management system through effective controlling
Goal Setting
can play a prominent role in influencing motivation.
System 2
characterized by a condescending, master-to-servant style of confidence and trust in subordinates. - Subordinates do not feel free to discuss their jobs with superiors and are motivated by rewards and actual or potential punishments. - Information flows mostly downward; - upward communication may or may not be viewed with suspicion. Although policies are made primarily at the top of the organization, decisions within a prescribed framework are made at lower levels.
System 1
characterized by a lack of confidence or trust in subordinates. - Subordinates do not feel free to discuss their jobs with superiors and are motivated by fear, threats, punishments, and occasional rewards. - Information flow is directed primarily downward - The bulk of all decision making is done at the top of the organization.
System 4
characterized by complete trust and confidence in subordinates. - Subordinates feel completely free to discuss their jobs with superiors and are motivated by factors such as economic rewards, which are based on a compensation system developed through employee participation and involvement in goal setting. - Information flows upward, downward, and horizontally. - Upward communication is generally accepted—but even when it is not, employees' questions are answered candidly. - Decision making is spread widely throughout the organization and is well coordinated.
System 3
characterized by substantial, though not complete, confidence in subordinates. - Subordinates feel fairly free to discuss their jobs with superiors and are motivated by rewards, occasional punishments, and some involvement. - Information flows both upward and downward in the organization. - Upward communication is often accepted, though at times it may be viewed with suspicion. Although broad policies and general decisions are made at the top of the organization, more specific decisions are made at lower levels.
The three basic types of formal organizational communication
downward, upward, and lateral.
Advantages of JIT
enhances organizational performance in several important ways 1) reduces the unnecessary labor expenses generated by manufacturing products that are not sold 2) minimizes the tying up of monetary resources in purchases of production-related materials that do not result in timely sales 3) helps management hold down inventory expenses, particularly storage and handling costs. Better inventory management and control of labor costs, in fact, are the two most commonly cited benefits of JIT.
control
entails ensuring that an event occurs as it was planned to occur.
graphic break-even analysis.
entails the construction of a graph showing all the critical elements in a break-even analysis the total revenue line starts at zero.
Patterns
evolve from the repeated occurrence of various serial transmissions of information *review images for chapter 14
Illusion of control
exists when entrepreneurs overestimate the extent to which they can control the outcome of an opportunity. The outcomes of some opportunities rely more on luck than on entrepreneurial skills
Standards reflecting the relative balance between short- and long-range goals
express the relative emphasis that should be placed on attaining various short- and long-range goals. recognizes that short-range goals exist to enhance the probability that long-range goals will be attained.
@ Skim: Motion study
finds the best way to accomplish a task by reducing each job to the most basic movements possible.
Management ideas
focus on invention relating to the way in which the organization is managed. These ideas involve management as a whole and center on improving human resource management, redesigning organizational structure, changing organizational leadership, or refining competitive strategy.
Product ideas
focus on invention that develops new products or services or enhances existing products or services. Such ideas can include issues related to pricing products, promoting products in the marketplace, distributing products, packaging products, and advertising products
Technology ideas
focus on invention that enhances the use of technology within organizations. Technology ideas can cover a wide array of topics and include ideas such as employing barcoding to better manage inventory or using videoconferencing to help organization members around the globe communicate more effectively.
Process ideas
focus on inventions that improve a manufacturing process. Examples of process ideas include incorporating robotics to make a manufacturing process more efficient and redesigning work stations to make workers more productive.
budgetary control
for ensuring that income and expenses occur as planned. develop and implement a control strategy aimed at bringing actual performance in line with planned performance assumes that the plan contained in the budget is appropriate for the organization
Stages of team development process
forming storming norming preforming adjourning
Job enrichment
frederick Herzberg is the process of incorporating motivators into a job situation. the degrees of satisfaction and dissatisfaction that organization members feel as a result of performing a job are two different variables determined by two different sets of items 1) hygiene, or maintenance, factors 2) motivating factors (motivators) the most productive organization members are those involved in work situations that have both desirable hygiene and motivating factors. Esteem needs can be satisfied by both types of factors.
Differences between Social entrepreneurship and Commercial entrepreneurship
he entrepreneur's mission or purpose. - The purpose of commercial entrepreneurship is to create profits - the purpose of social entrepreneurship is to create value for the public (cannot totally ignore issues surrounding sales and costs) the availability of resources such as funding and employees. - Unlike commercial entrepreneurs, social entrepreneurs face many difficulties attracting capital from angel investors, venture capitalists, and banks - most social entrepreneurs rely on donations as sources of funding and frequently face difficulties in hiring and compensating employees. --> usually must focus on hiring people who share the organization's purpose. Such people tend to be willing to work for low salaries (or volunteers) terms of performance measures. - Commercial entrepreneurs focus on quantitative measures such as profits, shareholder wealth, revenues, and costs - social entrepreneurs focus on performance measures that are not related to money
Alderfer's frustration-regression principle
he found that a worker frustrated by his failure to satisfy an upper-level need might regress by trying to fulfill an already satisfied lower-level need. To counteract such regression, management might use job enrichment strategies designed to help people meet their higher-order needs.
@ Profitability standards
indicate how much money GE would like to make as profit over a given period—that is, its return on investment using computerized preventive maintenance more often on its equipment programs have reduced labor costs and equipment downtime, and have thereby helped raise company profits.
@ Market position standards
indicate the share of total sales in a particular market that GE would like to have relative to that of its competitors.
@ Product leadership standards
indicate what must be done to attain a leading position in product innovation in its field Ex: reflecting this interest in innovation, GE has pioneered the development of synthetic diamonds for industrial use.
@ Employee attitudes standards
indicate what types of attitudes GE managers should strive to inculcate in GE employees positive attitudes toward product quality
organizational rejuvenation
involves improving a firm's ability to execute strategies and focuses on new processes instead of new products
Organizational rejuvenation
involves improving a firm's ability to execute strategies and focuses on new processes instead of new products.
Commercial entrepreneurship
involves individuals or corporations that pursue entrepreneurial opportunities for the purposes of generating sales and profits.
2. Theory X and Theory Y
involves managers' assumptions about human nature problem = McGregor considered only the ineffective application of Theory X and the effective application of Theory Y. William Reddin argues that production might be increased by using either Theory X or Theory Y assumptions, depending on the situation the manager faces activities based on Theory Y assumptions are more apt to motivate organization members than are activities based on Theory X assumptions
Serial transmission
involves passing information from one individual to another in a series.
Social entrepreneurship
involves the recognition, evaluation, and exploitation of opportunities that create social value as opposed to personal or shareholder wealth
Group
is "any number of people who (1) interact with one another, (2) are psychologically aware of one another, and (3) perceive themselves to be a group." characterized by frequent communication among members over time and by a small enough size to permit each member to communicate with all other members on a face-to-face basis each group member influences and is influenced by all other group members.
Self-actualization need
is Maslow's fifth, and final, set of human needs, which reflects the human desire to maximize personal potential. (need for growth)
Physiological need
is Maslow's first set of human needs for the normal functioning of the body, including the desires for water, food, rest, sex, and air. Until these needs are met, a significant portion of an individual's behavior will be aimed at satisfying them
Esteem Need
is Maslow's fourth set of human needs, which includes the desires for self-respect and respect from others.
Security or safety need
is Maslow's second set of human needs, which reflects the human desire to be free from physical harm (bodily and economically)
Social need
is Maslow's third set of human needs, which reflects the human desire to belong, including longings for friendship, companionship, and love. reflect a person's desire to be accepted by others
informal group
is a collection of individuals whose common work experiences result in the development of a system of interpersonal relations that extend beyond those established by management. (groups that develop naturally as people interact) - org member can belong to more than one informal group at the same time - not highly structured in procedure - Not generally formally recognized by management
Computer-aided design (CAD)
is a computerized technique for designing new products or modifying existing ones. - Computer graphics is used to design geometric specifications for parts - computer-aided engineering (CAE) is employed to evaluate and perform engineering analyses on a part ensures the quality of a product by guaranteeing not only the quality of parts in the product but also the appropriateness of the product's design.
Argyris's maturity-immaturity continuum
is a concept that furnishes insights into human needs by focusing on an individual's natural progress from immaturity to maturity.
Management by exception
is a control tool that allows only significant deviations between planned and actual performance to be brought to a manager's attention. based on exception principle, leaving managers free to deal with nonroutine, or exceptional, organizational issues technique ensures the best use of managers' time → only significant issues are brought to managers' attention, the possibility that managers will spend their valuable time working on relatively insignificant issues is automatically eliminated.
Budget
is a control tool that outlines how funds in a given period will be spent, as well as how they will be obtained.
Ratio analysis
is a control tool that summarizes the financial position of an organization by calculating ratios based on various financial measures that appear on the organization's balance sheet and income statements.
Value analysis
is a cost control and cost reduction technique that examines all the parts, materials, and functions of an operation to help managers control operations by focusing primarily on material costs Goal is to reduce costs by using cheaper components and materials so that product quality or appeal is not affected. → Simplification of parts—which lowers production costs
Communication microbarrier definition
is a factor hindering successful communication that relates primarily to such variables as the communication message, the source, and the destination.
task group
is a formal group of organization members who interact with one another to accomplish nonroutine organizational tasks. Members of any one task group can come from various levels in the organizational hierarchy.
Command group
is a formal group that is outlined in the chain of command on an organization chart. Command groups typically handle routine activities.
Formal group
is a group that exists within an organization by virtue of management decree to perform tasks that enhance the attainment of organizational objectives. ex: members in areas such as marketing departments, human resource departments, and production departments coordination of and communication among these groups is the responsibility of managers, or supervisors 2 kinds: task (work team) and command (committee)
team
is a group whose members influence one another toward the accomplishment of an organizational objective(s). - Not all groups in organizations are teams, but all teams are groups. - A group qualifies as a team only if its members focus on helping one another accomplish organizational objectives
Pure-preventive maintenance policy
is a maintenance control policy that tries to ensure that machine adjustments, lubrication, cleaning, parts replacement, painting, and needed repairs and overhauls will be performed before facilities or machines malfunction.
Pure-breakdown (repair) policy
is a maintenance control policy which decrees that facilities and equipment be fixed only after they malfunction. Plants that use special-purpose equipment are more likely to invest in standby equipment
Needs-goal theory
is a motivation model that hypothesizes that felt needs cause human behavior. 1) motivation begins with an individual feeling a need 2) need is then transformed into behavior directed at supporting, or allowing, the performance of goal behavior to reduce the felt need 3) goal-supportive behavior and goal behavior continue until the felt need has been significantly reduced.
Vroom expectancy theory
is a motivation theory that hypothesizes that felt needs cause human behavior and that motivation strength depends on an individual's degree of desire to perform a behavior. People tend to perform behaviors that maximize their personal rewards over the long term.
Porter-Lawler theory (check if need to know)
is a motivation theory that hypothesizes that felt needs cause human behavior and that motivation strength is determined primarily by the perceived value of the result of performing the behavior and the perceived probability that the behavior performed will cause the result to materialize.
flextime
is a program that allows workers to complete their jobs within a workweek of a normal number of hours that they schedule themselves. The main purpose to give workers greater flexibility in scheduling their work hours
Behavior modification
is a program that focuses on encouraging appropriate behavior by controlling the consequences of that behavior. the law of effect, behavior that is rewarded tends to be repeated, whereas behavior that is punished tends to be eliminated. rewards are generally emphasized because they are more effective than punishments in influencing behavior
Intrinsic reward
is a reward that comes directly from performing a task.
positive reinforcement
is a reward that consists of a desirable consequence of behavior.
extrinsic reward
is a reward that is extraneous to the task accomplished.
Theory X
is a set of essentially negative assumptions about human nature. believes managers often use as the basis for dealing with their subordinates (e.g., the average person has an inherent dislike of work and will avoid it whenever he or she can).
Theory Y
is a set of essentially positive assumptions about human nature. workers exercise self-direction and self-control in meeting their objectives.
symptom
is a sign that a problem exists. ex: the worker's failure to communicate adequately could be a symptom of inappropriate job design or a cumbersome organizational structure
Quality circle
is a small group of workers that meets to discuss quality-related problems in a particular project and to communicate their solutions to these problems to management at a formal presentation session.
@ Sociogram
is a sociometric diagram that summarizes the personal feelings of organization members about the people in the organization with whom they like to spend free time.
Control tool
is a specific procedure or technique that presents pertinent organizational information in a way that helps managers to develop and implement an appropriate control strategy. aids managers and workers in pinpointing the organizational strengths and weaknesses on which a useful control strategy must focus - continuous improvement - Inspection - management by exception - establishing rules - management by objective
Decision tree analysis
is a statistical and graphical, multiphased decision-making technique that contains a series of steps showing the sequence and interdependence of decisions. allow a decision maker to deal with uncertain events by determining the relative expected value of each alternative course of action. probabilities of different possible events are known, as are the monetary payoffs that would result from a particular alternative and a particular event best suited to situations in which capacity decisions involve several capacity expansion alternatives and the selection of the alternative with the highest expected profit or the lowest expected cost is necessary.
Committee
is a task group of individuals that is charged with performing some type of specific activity. exist in almost all organizations and at all organizational levels. --> larger the organization, the greater the probability that it will use committees regularly - Committees are often used to recruit new organization members - most executives favor using committees
Work team
is a task group used in organizations to achieve greater organizational flexibility or to cope with rapid growth.
Just-in-time (JIT) inventory control
is a technique for reducing inventories to a minimum by arranging for production components to be delivered to the production facility "just in time" for them to be used. -products should be manufactured only when customers need them and only in the quantities customers require in order to minimize the amounts of raw materials and finished goods inventories that manufacturers keep on hand
process control
is a technique that assists in monitoring production processes. to ensure that the quality of their output is acceptable.
Computer-aided manufacturing (CAM)
is a technique that employs computers to plan and program equipment used in the production and inspection of manufactured items.
Maintenance control
is aimed at keeping an organization's facility and equipment functioning at predetermined work levels. managers must select a strategy that will direct personnel to fix equipment either before it malfunctions or after it malfunctions (maintenance control continuum) select a level and frequency of maintenance that minimize the cost of both preventive maintenance and breakdowns (repair).
Total revenue
is all sales dollars accumulated from selling manufactured products or services. total revenue increases as more products are sold.
@ Sociometry
is an analytical tool that can be used to determine what informal groups exist in an organization and who the leaders and members of those groups are.
Theory Z
is an effectiveness dimension that implies that managers who use either Theory X or Theory Y assumptions when dealing with people can be successful, depending on their situation.
Fixed cost
is an expense incurred by the organization regardless of the number of products produced. Ex: real estate taxes, upkeep to the exterior of a business building, and interest expenses on money borrowed to finance the purchase of equipment.
Variable cost
is an expense that fluctuates with the number of products produced. Ex: costs of packaging a product, costs of materials needed to make the product, and costs associated with packing products to prepare them for shipping.
McClelland's acquired needs theory
is an explanation of human needs that focuses on the desires for achievement, power, and affiliation that people develop as a result of their life experiences.
Process theory of motivation
is an explanation of motivation that emphasizes how individuals are motivated. focus essentially on the steps that occur when an individual is motivated.
Content theory of motivation
is an explanation of motivation that emphasizes people's internal characteristics. focus on understanding what needs people have and how those needs can be satisfied
Equity theory
is an explanation of motivation that emphasizes the individual's perceived fairness of an employment situation and how perceived inequities can cause certain behaviors. basis of equity theory is that employees compare what they get from a job (outcomes) in relation to what they put into it (inputs), and then they compare their inputs-outcomes ratio with the inputs-outcomes ratios of relevant others - Perceptions of inequities can arise in work assignments, promotions, ratings reports, and office assignments --> occur most often in the area of pay. - all issues are emotionally charged because they all pertain to people's feelings of self-worth
Entrepreneur
is an individual who identifies, evaluates, and exploits opportunities. that organizations started by entrepreneurial teams tend to perform better than those started by individual entrepreneurs working by themselves
Motivation strength
is an individual's degree of desire to perform a behavior. motivation strength is determined by 1) the perceived value of the result of performing a behavior 2) the perceived probability that the behavior performed will cause the result to materialize. -- As both of these factors increase, so does motivation strength, or the desire to perform the behavior.
Perception
is an individual's interpretation of a message.
Friendship group
is an informal group that forms in organizations because of the personal affiliation members have with one another. foundations for group: - Personal factors such as recreational interests, race, gender, and religion members change over time as friendships dissolve or new friendships are made
Interest group
is an informal group that gains and maintains membership primarily because of a common concern members have about a specific issue. once concern that instigated the formation of the informal group has been eliminated, the group will probably disband
Entrepreneurial opportunity
is an occasion to bring into existence new products and services that allow outputs to be sold at a price greater than their cost of production. exist when individuals are able to sell new products and services at a price that produces a profit
Materials control
is an operational activity that determines the flow of materials from vendors through an operations system to customers. Materials management activities can be broadly organized into six groups or functions: purchasing, receiving, inventorying, floor controlling, trafficking, and shipping and distributing.
@ Skim: Labor force planning
is an operational plan for hiring the right employees for a job and training them to be productive.
Job design
is an operational plan that determines who will do a specific job and how and where the job will be done.
@ Skim: Work methods analysis
is an operational tool used to improve productivity and ensure the safety of workers.
Quality assurance
is an operations process involving a broad group of activities aimed at achieving an organization's quality objectives. is a continuum of activities that starts when quality standards are set and ends when quality goods and services are delivered to the customer.
Self-managed team
is an organizational team that plans, organizes, influences, and controls its own work situation with only minimal intervention and direction from management. 5 to 15 employees who work together to produce an entire product. - all the tasks required to produce the product and rotate from job to job. - responsible for whole tasks - employees have control over managerial duties such as scheduling work and vacations and ordering materials - free managers to pursue other management activities such as strategic planning
Feasibility analysis
is analysis that helps entrepreneurs understand whether an idea is practical.
problem
is any factor within an organization that is a barrier to organizational goal attainment.
information
is any thought or idea that managers want to share with others
Downward organizational communication
is communication that flows from any point on an organization chart downward to another point on the organization chart. - associated primarily with the direction and control of employees. - typically includes a statement of organizational philosophy, management system objectives, position descriptions, and other written information relating to the importance, rationale, and interrelationships of various departments - refers to the messages that management delivers to employees. - can have a significant impact on an organization's productivity and hence its profitability.
Lateral organizational communication
is communication that flows from any point on an organization chart horizontally to another point on the organization chart. - focuses on coordinating the activities of various departments and developing new plans for future operating periods
Upward organizational communication
is communication that flows from any point on an organization chart upward to another point on the organization chart. - contains primarily the information managers need in order to evaluate the organizational area for which they are responsible and to determine whether something is going wrong within it. - Techniques used to encourage it: informal discussions with employees, attitude surveys, the development and use of grievance procedures, suggestion systems, and an open-door policy that invites employees to come in whenever they would like to talk to management
Innovation process
is defined as the steps managers take to implement creative ideas five main steps: inventing, developing, diffusing, integrating, and monitoring.
message
is encoded information that the source intends to share with others.
Organizational communication
is interpersonal communication within organizations that directly relates to the goals, functions, and structure of human organizations. - relates directly to the goals, functions, and structure of human organizations. - organizational success is determined by the effectiveness of organizational communication
Operations control
is making sure that operations activities are carried out as planned. major components are - just-in-time inventory control - maintenance control - cost control - budgetary control - ratio analysis - materials control
Corrective action
is managerial activity aimed at bringing organizational performance up to the level of performance standards. Before taking any corrective action managers should make sure that - the standards they are using were properly established - their measurements of organizational performance are valid and reliable corrective action can focus on one or more of the three primary management functions of planning, organizing, and influencing.
Informal organizational communication
is organizational communication that does not follow the lines of the organization chart. - typically follows the pattern of personal relationships among organization members: One friend communicates with another friend, regardless of their relative positions on the organization chart - generally exist because organization members have a desire for information that is not furnished through formal organizational communication To manage: strive to understand how this informal network operates in their organizations
Formal organizational communication
is organizational communication that follows the lines of the organization chart.
Operations management
is performance of managerial activities entailed in selecting, designing, operating, controlling, and updating production systems. the systematic direction and control of the operations processes that transform resources into finished goods and services
Encoding
is putting information into a form that can be received and understood by another individual. When encoding information, managers should be careful to define whenever possible the terms they are using, avoid using obscure meanings for words when designing messages, and strive to use words in the same way that their destination uses them
Break-even point
is that level of production where the total revenue of an organization equals its total costs. the point at which the organization is generating only enough revenue to cover its costs. The company is neither gaining a profit nor incurring a loss.
Monitoring
is that step of the innovation process in which a newly implemented idea is tracked to determine if and when the idea should be improved or terminated. As long as the implemented ideas continue to contribute to organizational success, the useful lives of those ideas will continue
Inventing
is that step of the innovation process that establishes a new idea that could help the organization be more successful. Ideas vary but usually fall into one of the following categories: technology, product, process, and management
Integrating
is that step of the innovation process that establishes an invention as a permanent part of the organization.
Developing
is that step of the innovation process that makes a new idea practical. an idea must be developed, or made practical as a vehicle for enhancing organizational success. some ideas are practical and some are not
Diffusing
is that step of the innovation process that puts a new idea to use by end users or customers.
Creativity
is the ability to generate original ideas or new perspectives on existing ideas.
Collaboration
is the ability to work with others in accomplishing a task. -collaboration within work teams is a key factor in building team success.
loss
is the amount of the total costs of producing a product that exceeds the total revenue gained from selling the product.
profit
is the amount of total revenue that exceeds the total costs of producing the products sold.
Emotional intelligence
is the capacity of people to recognize their own feelings and the feelings of others, to motivate themselves, and to manage their own emotions as well as their emotions in relationships with others.
Total quality management (TQM)
is the continuous process of involving all organization members in ensuring that every activity related to the production of goods or services has an appropriate role in establishing product quality. believe that a TQM program should be company-wide and must include the cooperation of all people within a company
Effectiveness
is the degree to which managers attain organizational objectives; it is "doing the right things."
Efficiency
is the degree to which organizational resources contribute to production; it is "doing things right."
Need for power (nPower)
is the desire to control, influence, or be responsible for others. People with a significant need for power - greatly motivated to influence others and to assume responsibility for subordinates' behavior - likely to seek advancement and to take on work activities that have increasing amounts of responsibility in order to earn that advancement. Power-oriented managers are comfortable in competitive situations and enjoy their decision-making roles.
Need for achievement (nAch)
is the desire to do something better or more efficiently than it has ever been done before. People with high need for achievement: - maximize their satisfaction, individuals set goals for themselves that are challenging yet achievable. - willing to assume risk but assess it carefully because they do not want to fail. - they will avoid tasks that involve too much risk. People with a small need for achievement - generally avoid challenges, responsibilities, and risk
Need for affiliation (nAff)
is the desire to maintain close, friendly, personal relationships. significant need for affiliation - have a cooperative, team-centered managerial style. - prefer to influence subordinates to complete their tasks through team efforts - danger = can lose their effectiveness if this need for social approval and friendship interferes with their willingness to make managerial decisions
quality
is the extent to which a product reliably does what it is intended to do. -- how closely it satisfies the specifications to which it was built
forming
is the first stage of the team development process, during which members of the newly formed team become oriented to the team and acquainted with one another as they explore issues related to their new job situation. characterized by exploring issues related to the members' new job situations, such as what is expected of them, who has what kind of authority within the team, what kinds of people are team members, and what skills team members possess. Characterized by uncertainty and stress
Motivation
is the inner state that causes an individual to behave in a way that ensures the accomplishment of some goal. - explains why people act as they do - Because productivity is a result of the behavior of organization members, motivating organization members is the key to reaching organizational goals
standard
is the level of activity established to serve as a model for evaluating organizational performance. - can be that of the organization as a whole or that of some individuals working within the organization - may involve past performance - may involve external parties
Entrepreneurial risk
is the likelihood and magnitude of the opportunity's downside loss.
groupthink
is the mode of thinking that group members engage in when the desire for agreement so dominates the group that it overrides the need to realistically appraise alternative solutions.
growth need
is the need for continuing personal growth and development.
Existence need
is the need for physical well-being.
Relatedness need
is the need for satisfying interpersonal relationships.
grapevine
is the network/pattern of informal organizational communication. three main characteristics: 1) It springs up and is used irregularly within the organization. 2) It is not controlled by top executives, who may not even be able to influence it. 3) It exists largely to serve the self-interests of the people within it. uses serial transmissions - more difficult for managers to identify the organization members involved in these informal transmissions how managers should deal with the grapevine depends on the specific organizational situation in which they find themselves -- can use it advantageously to share info
Punishment
is the presentation of an undesirable behavior consequence or the removal of a desirable behavior consequence that decreases the likelihood that the behavior will continue. undesirable side effects, such as high absenteeism and turnover Positive punishment: Something bad is given following poor performance Negative Punishment: something desired is taken away
Corporate entrepreneurship
is the process in which an individual or group of individuals in an existing corporation creates a new organization or instigates renewal or innovation within that corporation. new companies often continue to work closely with the parent company can be classified into four general types 1) sustained regeneration. 2) organizational rejuvenation 3) strategic renewal 4) domain definition
controlling
is the process managers go through to control. It is "a systematic effort . . . to compare performance to predetermined standards, plans, or objectives to determine whether performance is in line with these standards" or needs to be corrected.
Innovation
is the process of applying a new idea to the improvement of organizational processes, products, or services without innovation, organizations tend to become less competitive and less desirable to customers as well as to organization members, and organizations that do not innovate tend to fail
Decoding
is the process of converting messages back into information. message meaning is the result of decoding
Break-even analysis
is the process of generating information that summarizes various levels of profit or loss associated with various levels of production. three facets of this control tool: 1) basic ingredients of break-even analysis (involves reflection, discussion, reasoning, and decision making relative to the following seven major aspects of production:) 2) types of break-even analysis available to managers 3) the relationship between break-even analysis and controlling
influencing
is the process of guiding the activities of organization members in appropriate directions. influencing function of management focuses on guiding people to accomplish goals.
Job enlargement
is the process of increasing the number of operations an individual performs in order to enhance the individual's satisfaction with work. more successful at increasing job satisfaction than are job rotation programs.
Job rotation
is the process of moving workers from one job to another rather than requiring them to perform only one simple and specialized job over the long term. attempt to overcome job boredom effective for - achieving other organizational objectives, such as training (individuals an overview of how the various units of the organization function) - increasing organizational profitability - procedure for reducing absenteeism ineffective as motivation strategies - people become bored of every job
communication
is the process of sharing information with other individuals. involves the process of one person projecting a message to one or more other people, which results in everyone arriving at a common understanding of the message often cited as the skill most responsible for a manager's success
Statistical quality control
is the process used to determine how many products should be inspected to calculate a probability that the total number of products will meet organizational quality standards. effective quality assurance strategy reduces the need for quality control and subsequent corrective actions
Productivity
is the relationship between the total amount of goods or services being produced (output) and the organizational resources needed to produce them (input). productivity = outputs / inputs - higher the value of the ratio of outputs to inputs, the higher the productivity of the operation.
Automation
is the replacement of human effort by electromechanical devices in operations such as welding, materials handling, design, drafting, and decision making. goals of automation include reduced inventories, higher productivity, and faster billing and product distribution cycles.
Verbal communication
is the sharing of information through words, either written or spoken.
Nonverbal communication
is the sharing of information without using words. - Factors commonly used to encode thoughts in nonverbal communication are gestures, vocal tones, and facial expressions communication, facial expressions, gestures, gender, and dress. - may have more influence on the total effect of the message use to - complement verbal message components whenever possible - can also be used to add meaning to verbal messages
robotics
is the study of the development and use of robots.
Total cost
is the sum of fixed costs and variable costs.
production
is the transformation of organizational resources into products. -inputs (resources) - transformation - outputs (products)
Cost control
is wide-ranging control aimed at keeping organizational costs at planned levels - Is an important responsibility of all managers in an organization. - cost savings are generally realized at the operations level.
Feedback
is, in the interpersonal communication situation, the destination's reaction to a message. - can be used by the source to ensure successful communication. - can be either verbal or nonverbal
5. Likert's management systems
management styles in organizations can be categorized into 4 systems - organization that moves toward system 4 tends to become more productive over the long term. - increase production in the short term by using a system 1 management style because motivation by fear, threat, and punishment is generally effective in the short run --> decline over time - system 4 management style will probably face some decline in production initially but will see an increase in production over the long term.
Linking pins:
managers or supervisors who are responsible for the coordination of and communication among formal organizational groups.
6. Monetary incentives
monetary compensation program available to employees as a form of motivation employee stock ownership plans (ESOPs) motivate employees to boost production by offering them shares of company stock as a benefit. stock bonuses as an incentive to think more like an owner and ultimately do a better job of building a successful organization. Other incentive plans include lump-sum bonuses—one-time cash payments
three relationships motivation is based on a in vroom expectancy theory
motivation is based on a set of three relationships: Effort-performance relationship Performance-reward relationship Rewards-personal goals relationship.
Importance of motivation organizational members
motivation is one of the four primary interrelated activities of the influencing function performed by managers to guide the behavior of organization members toward the attainment of organizational objectives. Successful managers minimize inappropriate behavior and maximize appropriate behavior among subordinates, thus raising the probability that productivity will increase and lowering the probability that it will decrease.
Early job design strategies
movement to make jobs simpler and more specialized to increase worker productivity. - idea behind this movement = to make workers more productive by enabling them to be more efficient. Ex: automobile assembly line negative result of work simplification and specialization = job boredom - As jobs become simpler and more specialized, they typically become more boring and less satisfying to workers, and thus productivity suffers. --> job rotation --> job enlargement
To increase probability of success:
must be encoded so that the source's experience of the way a signal should be decoded is equivalent to the destination's experience of the way it should be decoded.
Measuring Performance
must establish some unit of measure that gauges performance and observe the quantity of this unit as generated by the employee whose performance is being measured - How to Measure. -> first must establish units of measure that represent - What to Measure.
Strategic renewal
occurs when a firm attempts to alter its own competitive strategy.
strategic renewal
occurs when a firm attempts to alter its own competitive strategy; occurs when the firm tries to offer a brand-new competitive strategy - it remains quite difficult for a firm to change strategies
Domain definition
occurs when a firm proactively seeks to create a new product market position that competitors have not recognized.
domain definition
occurs when a firm proactively seeks to create a product market position that competitors have not recognized - firms hope to become the first entrant in a market segment → firms will enjoy the benefits of having no competitors.
Opportunity evaluation
occurs when an entrepreneur decides whether he or she has just a good idea or a viable opportunity that will provide the desired outcomes
Bank financing
occurs when an entrepreneur obtains financing from a financial institution in the form of a loan make loans and expect repayment of the loans with interest Banks are not concerned with the long-term potential for returns → more interested in ensuring that the entrepreneur's opportunity survives long enough to ensure loan repayment investors typically seek risk, but banks are likely to minimize risk.
sustained regeneration
occurs when firms develop new cultures, processes, or structures to support new product innovations in current markets as well as introduce existing products into new markets - most frequently used type of corporate entrepreneurship.
Sustained regeneration
occurs when firms develop new cultures, processes, or structures to support new product innovations in current markets as well as introduce existing products into new markets.
encouragement of formal organizational communication
organizational communication is often called the nervous system of the organization. Formal organizational communication is generally the more important type of communication within an organization, so managers should encourage its free flow. One strategy → listen attentively to messages that come through formal channels 1) shows organization members that the manager is interested in what subordinates have to say 2) encourages them to use formal communication channels in subsequent situations.
Establishing rules
organizations establish rules to ensure that exceptional issues surface as a matter of normal operating procedure must be done carefully to ensure that all true deviations are brought to the manager's attention.
7. Nonmonetary incentives
policy of promoting from within - elaborate process of advertising jobs internally before going outside the company to fill vacancies emphasizes quality, on the theory that most workers are unhappy when they know their work goes toward producing a shoddy product
Entrepreneurial alertness
refers to an individual's ability to notice and be sensitive to new information about objects, incidents, and patterns of behavior in the environment. high levels of entrepreneurial alertness, they are likely to identify potential entrepreneurial opportunities low levels of entrepreneurial alertness, they are likely to dismiss or ignore new information and overlook potential opportunities.
Unsuccessful communication
refers to an interpersonal communication situation in which the information the source intends to share with the destination and the meaning the destination derives from the transmitted message are different if the destination's message reaction is inappropriate, the source can conclude that communication was unsuccessful and that another message should be transmitted
Successful communication
refers to an interpersonal communication situation in which the information the source intends to share with the destination and the meaning the destination derives from the transmitted message are the same. If the destination's message reaction is appropriate, the source can conclude that communication was successful (assuming, of course, that the appropriate reaction did not happen merely by chance)
Cross-cultural experience
refers to experience living in a foreign country As individuals gain cross-cultural experience, they have access to different types of existing products, services, and customer problems associated with new cultures → helps them to identify new opportunities
Law of small numbers
refers to individuals relying on small samples of information to guide their decisions. Because small samples are more likely to provide encouraging information and less likely to provide discouraging information, small samples of information tend to be biased positively. Common b/c most entrepreneurs do not have access to large amounts of information
Message interference
refers to stimuli that compete with the communication message for the attention of the destination
Exploitation
refers to the activities and investments that are committed to gain returns from the new product or service arising from an opportunity. exploitation entails all of those activities (i.e., marketing, production, etc.) needed to sell the new product to consumers.
Social value
refers to the basic, long-standing needs of society and has little to do with profits.
Information asymmetry
refers to the fact that individuals vary in terms of the information to which they have access involves both new information and old information, and no two people share all of this information at the same time
Entrepreneurship
refers to the identification, evaluation, and exploitation of opportunities. (process still involves starting new businesses)
Downside loss
refers to the resources (i.e., money, relationships, etc.) that the entrepreneur could lose if the opportunity does not succeed.
the ability to establish means-ends relationships
refers to understanding how to turn a new technology into a product or service that will be desired by consumers If you don't understand technology, cant see the opportunity
Social networks
represent individuals' patterns of social relationships type of social network may influence opportunity identification
@ Social responsibility standards
responsibility to make contributions to society. Standards outline the levels and types of contributions that management believes should make.
transformation
s the set of steps necessary to change these resources into products
3. Job design
strategy that managers can use to motivate organization members that involves designing jobs that organization members perform.
two primary factors that influence how a message is perceived:
the destination's education level the destination's amount of experience
Adjourning,
the fifth and last stage of the team development process, is the stage in which the team finishes its job and prepares to disband. - occurs only in teams established to accomplish some special purpose in a limited time period. - team members are disappointed
performing
the fourth stage of the team development process, is characterized by a focus on solving organizational problems and meeting assigned challenges. - now productive
management by objectives
the manager assigns a specific set of objectives and action plans to workers and then rewards those workers on the basis of how close they come to reaching their goals.
Maslow's hierarchy of needs
the most widely accepted description of human needs Maslow states that human beings possess the five basic needs - can be arranged in a hierarchy of importance—the order in which individuals generally strive to satisfy them
motivation is
the process of furnishing organization members with the opportunities to satisfy their needs by performing productive behavior within the organization. managers do not motivate people, they create environments in which organization members motivate themselves.
Interpersonal communication
the process of transmitting information to others/with other organization members. three basic elements: - The source/encoder (source) - The signal - The decoder/destination (destination) divided into two types: verbal and nonverbal
storming
the second stage of the team development process, is characterized by conflict and disagreement as team members try to clarify their individual roles and challenge the way the team functions.
To gather nonverbal feedback
the source can observe the destination's nonverbal response to a message
To gather verbal feedback
the source can simply ask the destination pertinent message-related questions; the destination's answers should indicate whether the message was perceived as intended.
norming
the third stage of the team development process, is characterized by agreement among team members on roles, rules, and acceptable behavior while working on the team. - conflicts resolved
three factors that influence the performance of social entrepreneurs
their networks of relationships - Large networks provide social entrepreneurs with potential sources of capital to fund their social missions; can help social entrepreneurs identify potential employees and volunteers their capital bases - capital is perhaps even more important for social entrepreneurs because they do not have access to the venture capital and bank financing available to commercial entrepreneurs - capital raised through donations and other funding sources is extremely important for the success the public's acceptance of the new venture - When a large segment of society supports a social entrepreneur's cause, the social entrepreneur is likely to obtain the funds and employees or volunteers needed for success - when only a small segment of society supports the social entrepreneur's cause, it is more difficult for the entrepreneur to obtain the necessary resources
Individual needs
to have any success in motivating managers must understand the personal needs of those employees. Managers must be familiar with the needs their employees have and offer them rewards that can satisfy those needs
The most fundamental ingredient of effective teams
trust --> believing in the reliability, ability, and integrity of another.
the relationship between break-even analysis and controlling
useful control tool because it helps managers understand the relationships among fixed costs, variable costs, total costs, and profit and loss within an organization. Once these relationships are understood, managers can take steps to modify one or more of the variables to reduce the deviation between planned and actual profit levels
reverse innovation
which involves taking a concept or a product created for a very specific use and extending it to a new, often larger audience.
special-purpose team
work team consists of workers and union representatives meeting together to collaborate on operational decisions at all levels aim is to create an atmosphere conducive to quality and productivity improvements.
Problem-solving team
work team is an organizational team set up to help eliminate a specified problem within the organization. 5 to 12 volunteer members from different areas of the department who meet weekly to discuss ways to improve quality and efficiency Process: team reaches a consensus, makes recommendations to management, Management respond by implementing them in their entirety, modifying and then implementing them, or by requesting further information to assess them, team is generally disbanded.
Cross-functional team
work team is an organizational team composed of people from different functional areas of the organization who are all focused on a specified objective. composed of individuals from various functional specialties may or may not be self-managed but self-managed teams are generally cross-functional
