comm midterm
how we achieve equity
- change own inputs - change our outcomes - change our perceptions - change our basis of comparison - LEAVE
changing structures
- not a silver bullet - may not resolve all issues - change is difficult, costly/time consuming, employee resistance, change fatigue
managing
- supporting and facilitating individuals to achieve individual and organizational goals - executing the strategy - "doing things right"
leading
- uniting individuals around a common goal - developing the strategy - "doing the right things"
Marlow Case Takeaways
- we tend to overemphasize incentives from a motivational standpoint (removing barriers can be just as effective) - extrinsic vs intrinsic rewards - importance of accurate attributions - importance of perspective taking - our leadership approaches may be shaped by our backgrounds and preferences
Goal-setting failure
- what gets measured is what gets done - what gets rewarded is what gets done - undermines intrinsic motivation - encourages risky and unethical behavior ex. Wells Fargo, Ford Pinto
Entrepreneurship Funding
1. own savings and cash 2. credit cards 3. family and friends 4. Banks 5. venture capital firms
ABC
Attributes, Behaviors, Context
broad differentiation
Differentiating the firm's product offering from rivals' with attributes that appeal to a broad spectrum of buyers
ways to go public
IPO, SPAC, direct listing
Matrix Pros and Cons
Pros: more customer oriented, flexible negatives: resource allocation confusion, lack of clarity reporting, complicated
Entrepreneurship misconceptions
Silicon Valley model, funding = VC, it's all about great ideas
TOWS
Threats, Opportunities, Weaknesses, Strengths
VRIO
Valuable, Rare, costly to Imitate, Organized to capture value
Context/situation
What behaviors/styles fit the context or situation
fundamental attribution error
a mistake people make when they are trying to figure out what caused someone to act in a certain way
leadership
a process involving disproportionate influence over other in the pursuit of goals
direction
achieve a goal or objective
persistence
amount of time required to reach the goal
goal-setting theory
an individuals intention to work towards a goal is a primary source of motivation
matrix structure
an organization combines functional and divisional chains of command in a grid so that there are two command structures-vertical and horizontal
team Identity inputs
assignments, common experiences, successes and failures
disproportionate influence
at a given time, one person is better able to influence others than someone else
reinforcement theory
behavior is a function of consequences - rewards increase behavior - punishments decrease behavior
debt
borrowed funds that must be repaid with interest
directive leadership
boss makes the decisions
entrepreneurial startup
build scalable business
organization
collection of people working towards a common purpose or goal
legitimate power
connected to authority inherited with a persons role
empowering leadership
decisions making is delegated to employees throughout the company
interdependence
degree and form to which team members must rely on each other to perform their task effectively
Empowerment
delegating decision making to employees at all levels of the organization
differentiation
deliver distinct value
cost leadership
deliver low costs (but balance w quality)
USES of business model canvas
design new models, start for strategic planning, historical analysis, snapshot & common language, understand competition
consensus(across people)
do other people act this way in the same or similar situation
competitive advantage
do things differently and do different things
distinctiveness(across tasks)
does this person behave similarly in other situations
attribution
doesn't tell us the actual behavior, but tells us the ways we infer causes of behavior
multiprenuers
entrepreneurs who start a series of companies
most important characteristic in a leader
extraversion and conscientiousness
Attributes/traits
extraversion and consciousness
motivation
forces within a person that affect the direction, intensity, and persistence of voluntary behavior
venture capital
from VC firms and give up equity and some control for money
Apple's structure
functional structure
equity
funds raised through the sale of stock
departmentalization
grouping specialized jobs into meaningful units or groups
functional organization
groups together people who have similar skills or do similar tasks
consistency(over time)
has this person behaved similarly in the past
business plan
help attract investors, loans, minimize risk, plan
equity theory
how fairly people are treated compared to their coworkers
expectancy theory
individual acting a way depends on the strength of belief that the act will have an outcome that is valued
social loafing ingredients
individualized inputs, only group-level rewards, large group or task
angle investors
individuals or groups that provide financing for start-ups (seed capital)
referent power
influence because of admiration
expert power
influence that comes from having special knowledge
IPO
initial public offering
ramen profitability
just being able to afford to cover most basic expenses
Business model canvas components
key partners, key resources, key activities, cost structure, value proposition, customer relations, channels, customer segments, revenue streams
broad cost leadership
mass market focus ex. Walmart and Mccdonald's
function structure negatives
may lack customer focus, slower response times, tribes or silos
span of control
measures the number of people reporting to a manager
mini-mini
minimize weaknesses and avoid threats
mini-maxi strategy
minimize weaknesses by taking advantage of opportunities
easy goals
miss out on capability and lower motivation
best cost provider
more value for the money ex. target and southwest
centralization
most decision making is concentrated at the top
focus cost leadership
narrow buyer segment with lower costs ex. jiffylube
focused differentiation
niche market and meets taste of consumers ex. Cracker Barrel
mutual enhancement
only discussing what we all know because sharing unique things is a risk
business
organization that seeks to provide goods and services to customers
job specialization
organizing activities into clusters of related tasks that can be handled by certain groups or individuals
extrinsic rewards
outside the individual (ex. bonuses, raises, promotions)
Too hard goals
people often get discouraged
sole proprietorship
positives: complete control, easy & inexpensive, profits are personal income negatives: liability, sole responsibility, more work, financing
division pros and cons
positives: customer oriented, faster response times, better coordination within divisions negatives: duplication of resources, increased costs, disconnect between divisions
partnerships
positives: more resources and talent, easy and inexpensive, negatives: conflict, unlimited liability, financing
corporations
positives: separate entity, limited liability, easy ownership transfer, financing negatives: double taxation, expensive & complex, regulations and oversight
Wildfire structure
project teams, functional, matrix
Behaviors/styles
relationship oriented, task oriented, change oriented
escalation of commitment and sunk costs
repeated or further investing in a poor or suboptimal course of action to avoid embarrassment, avoid losing investment, or failure
unity of command
reporting to only one boss
core competencies
resources + capabilities
confirmation bias
seeking out info that confirms or aligns with beliefs and ignoring opposing info
strategy focus
seen when an organization is very clear about its mission and vision and has a coherent, well- articulated strategy for achieving these
process
set of behaviors and responses that continue for some period of time
corporate structure
shareholders -> board of directors -> top management
divisional organizations
similar to stand alone companies, divisions formed according to products, customers, processes, or geography
Functional structure positives
specialization, efficiency, skill development and clear career paths
challenging goals
specific challenging goals optimize results
decentralization
spreads decision making throughout the organization
small business
start business, own boss, steady income, long term
team identity outputs
strong common task commitment, shared performance goals, mutual accountability
self-fulfilling prophecy
suggests that behavior is heavily influenced by the expectations of those around us
team identity components
task commitment and cohesion
social loafing
tendency for average levels of effort in a group to mask one persons lower level of output
reward power
the ability to bestow positive benefits on employees
coercive power
the ability to punish someone if they don't comply
commerce
the exchange of goos and services
want
the gap between what is and what is desired
need
the gap between what is and what is required
chain of command
the line of authority that moves from the top of a hierarchy to the lowest level
interactional justice
the perceived degree to which one is treated with respect
distributive justice
the perceived fairness of an outcome
procedural justice
the perceived fairness of the process used to determine the outcome
intrinsic rewards
the personal satisfaction and enjoyment felt after attaining a goal
Why we work in teams?
to share the workload and generate ideas
business model
unique configuration of elements through which a company creates and captures value
maxi-maxi strategy
use strengths to maximize opportunities
maxi- mini strategy
use strengths to minimize threats
heart of business model canvas
value proposition
growth-oriented entrepreneurs
want their business to grow into a corporation
low psychological safety
we don't share because we're afraid of critiques
self-serving bias
we judge our own behavior in a different way
external explanation
when behavior is the result of external or situational factors
internal explanation
when behavior is thought to be under the control of the person
influence
when others are willing to allow you to direct their attention and actions
intensity
will to put forward necessary effort
intrapenuers
work for a company and have freedom to have new ideas and create new products
business plan
written description of business's future