Management CH 1, 2, 3, 5 Test

Importance of timing

Need must be recognized Quick decisions might be needed Failure to act or taking TOO MUCH TIME Bottom line is knowing when to make a decision is complicated.

Management by objectives

Objectives—what you are trying to acheive; they give an organization and its members a direction. Long-range—beyond the current fiscal year Short-range—less than 1 year Should span all major org areas Be dynamic—i.e. should change if needed. Usually fall into 4 categories profit oriented service oriented Employee well being Social responsibility

Devil's advocacy

1. Generate a potential solution 2. Assign a devil's advocate to criticize and question the solution 3. Present the critique of the potential solution to key decision makers 4. Gather additional relevant information 5. Decide whether to use, change, or not use the originally proposed solution

Delphi Technique

A group of experts respond to questions and to each other until reaching agreement

Levels in the org where planning occurs

A plan can be divided into subunits in larger organizations. A corporate level strategy is concerned with deciding which industries the firm should compete in and how it should enter or exit an industry. A business level strategy deals with how to compete in the selected industry. An operating strategy deals with the individual functions (departments) that support the business level strategy.

Why plan?

Actively affect the future. Means for activity. Multiple benefits. Positive impacts. Good planning = organizational success

Keys to an org culture that foster success

Adaptability Consistency Clear mission Employee involvement

Adaptive culture characteristics

Adaptive cultures have an external focus. Employees pay as much attention to organizational processes as they do organizational goals. Employees have a strong sense of ownership. Adaptive cultures are proactive and quick.

Difference between enlightened meritocracy & inert bureaucracy

An enlightened meritocracy may exist offering a host of opportunities for advancement, rewards for creativity, & productivity OR an inert bureaucracy may prevail that punishes change advocates, rewards only those who promote the status quo & inhibit productivity.

Types of artifacts

Artifacts are the observable symbols and signal of an organization's culture—we can't see an organization's shared values & assumptions. Some experts suggest that artifacts are the essence of corporate culture, whereas others view them as symbols or indicators of culture.

4 strategies to merge org cultures

Assimilation: Acquired Company willingly embraces acquiring firm's culture—rare but does occur when acquired company has a weak, dysfunctional culture. De-culturation: Acquiring firm imposes its culture on unwilling acquired firm. People who can't adapt are terminated. Integration: Combining two or more cultures into a new composite culture. It is a slow & risky process because many forces preserve existing culture. Separation: Merging companies remain distinct entities with minimal exchange of culture or organizational practices: e.g. Cisco & Linksys

Nominal Group Technique

Begins with group quiet time Each member shares one idea at a time with the group Group discusses the pros and cons of each idea Group members independently rank ideas presented Idea with highest average rank is selected

Frank & Lillian Gilbreth & Motion Studies

Breaking each task or job into separate motions and then eliminating those that are unnecessary or repetitive; Made improvements of 25-300%

Difference between cognitive & affective conflict

C-type (cognitive) conflict focuses on problem- and issue-related differences of opinion willingness to examine, compare, reconcile differences to produce the best possible solution. A-type (affective) conflict emotional reaction that can occur when disagreements become personal hostility, anger, resentment, distrust, cynicism, apathy

Conditions for decisions

Certainty Risk Uncertainty

Incremental (Stable) Change

Changes that do not alter the basic nature of competition in the task environment—usually the Norm.

Discontinuous (Dynamic) Change

Changes that fundamentally transform the nature of competition in the task environment. A new competitor creates the decline of an old player.

Open & Closed systems

Closed systems - can function without interacting with their environments; Open Systems - Interact with their environments and depend on them for survival

Methods to deal with uncertainty - collecting info (2 ways) & exerting control (3 ways)

Collecting information: Marketing Research (understanding customer needs & preferences) Competitive intelligence (determine what competitors are doing). Exerting control over the situation: e.g. acquire other smaller enterprises to control developing technology. Adapting to the environment Influencing the environment Selecting a new environment

4 barriers to effective decision making

Complacency—the decision maker doesn't see the need for a decision Defensive avoidance—decision maker denies the importance of danger or presence of an opportunity; or the responsibility for taking action Panic—frantic attempts to solve problems rarely produce the best results. Deciding to decide—accepting responsibility & challenge of decision making is critical to overall effectiveness

Mary Parker Follett & ideas about conflict

Constructive conflict: The appearance of difference, difference of opinions, of interests.; Domination — one side wins and the other loses, ; Compromise--each side gives up some of what they want; Integrative conflict resolution—have both parties indicate their preferences and then work together to find an alternative that meets the needs of both

4 methods to change or strengthen a culture

Culturally consistent rewards - When they do what we think is important we reward them Behavioral substitution - Change someone's behavior Change visible artifacts - Change the visible environment Hiring people with values and beliefs consistent with desired culture - Bring people in that believes the same as we do

Definition of cognitive biases

Decision making errors that we are all, prone to making & have been repeatedly verified in research. Managers with good information can still make bad decisions.

Importance of decision making

Decisions are central to a manager's ability to perform the four functions of management. Managers must be aware of their limitations while making decisions. 3 methods of decision-making can occur. Encouraging group participation can aid in this process. Cognitive conflict & creativity can help!

Motivations to manage

Desire to compete Desire to exercise power Desire to be distinct Desire to take action

Definition of Efficiency and Effectiveness

Efficiency is getting work done with a minimum of effort, expense, or waste. Effectiveness is accomplishing tasks that help fulfill organizational objectives.

Barriers to entry

Factors that make it costly for potential competitors to Enter an industry & compete with firms already in the industry. Examples include: Economies of Scale—cost reduction associated with large output Brand Loyalty—the preference of consumers for the products established companies

Henry ford and Operations Management

Ford - 1908 - building cars on assembly line, didn't invent the line just made it famous. Got the idea from the meat packing industry. Influenced by F. Taylor. Video Fordism 1920s USA

Definition of Management

Getting work done through others

4 factors facing managers in the new competitive landscape

Globalization Technological Change The importance of knowledge & ideas Collaboration across organizational boundaries

Pitfalls of group decision making

Groupthink - occurs in highly cohesive groups when group members feel intense pressure to agree with each other so that the group can approve a proposed solution Takes considerable time Strong willed members may dominate Satisficing may still occur Goal displacement can occur—group loses sight of its original goal & a new less important goal emerges

Definition of the planning horizon

Horizon refers to how far out a plan is meant to apply.

Hawthorne Studies & attitudes at work

Human factors related to work were found to be more important than physical conditions or design of work.; Workers not just extensions of machines, and financial incentives weren't necessarily the most important for motivating workers.; Managers better understood effect of group social interactions, employee satisfaction, and attitudes on individual and group performance.

Decision making styles

IMPULSIVE You give little thought or examination to the issues or possibilities. You tend to take the first alternative. Motto Don't look, just leap! FATALISTIC You let the environment decide. Leave it up to fate. Motto It's out of my hands! or It's all in the cards! COMPLIANT You allow someone else to decide. You follow someone else's plans. You offer no opinions. Motto What ever you say, (sigh... ) or It doesn't matter to me. DELAYING You tend to postpone thoughts and actions. You like to drag things out. Motto I need more time, information, input, etc. or What's the rush?

Pitfalls of planning

Impedes change and prevents or slows adaptation Creates a false sense of certainty Detachment of planners

Transitions to management - What happens initially,after 6 months, after a year

Initially - Be the boss, formal authority, manage tasks 6 months - Initial expectations were wrong, fast pace, heavy workload, job is to be problem solver and troubleshooter for subordinates. 1 year - No longer a doer, communication, listening, and positive reinforcement., learning to adapt to and control stress, job is people development.

Inputs & Outputs & Technology's impact

Inputs: Goods and services that organizations take in and use to create products or services. Outputs: The products and services that organizations create. Technology is just the process of turning inputs into outputs, so it's a linear relationship

Benefits of planning

Intensified effort. Persistence. Direction. Creation of task strategies. Provides direction & purpose. Helps to allocate resources. Helps budgeting processes. Assigns roles & responsibilities. Provides control over the organization.

3 Pieces of the Environment (internal & 2 external parts)

Internal Specific (Competitive/task) General (macro)

3 Types of Managerial Roles & examples of each & their duties

Interpersonal Roles Figurehead - Ceremonial Duties. Leader - Motivating and encourage workers to accomplish organizational objectives. Liaison - Dealing with people outside their units.; Informational Roles. Monitor - scanning their environment for information; Disseminator - Share information with others in their departments or companies. Spokesperson - Share information with people outside their departments or companies. Decisional Roles Entrepreneur - adapt themselves, their subordinates, and their units to change. Disturbance Handler - respond to severe pressures and problems that demand immediate action. Resource Allocator - they decide who gets what resources and in what amounts. Negotiator - negotiate schedules, projects, goals outcomes, resources and employee raises.

Punctuated Equilibrium

Is a view of industry evolution asserting that long periods of equilibrium are punctuated by periods of rapid change when industry structure is revolutionized by innovation.

5 elements of the General (macro) environment

Laws & Regulations/Political & Legal Economy Technology Demographics Sociocultural Issues/Social Values

Environmental uncertainty

Managers do not have enough information about the environment to understand or predict the future

Options-based planning & slack resources

Options-based planning - keep options open by making, small simultaneous investments in many alternative plans. Slack resources - a Cushion of resources, like extra time or money, that can be used to address and adapt to unanticipated Changes.

Benefits of participation in decision making

Participants understand why a decision is made Can lead to higher commitment to the decision

Chester Barnard's zone of indifference

People will be indifferent to managerial directives if they... are understood ...are consistent with organization's purpose ...are compatible with people's personal interests ...can actually be carried out by those people

4 Functions of Management and definitions

Planning - determining organizational goals and a means for achieving them Organizing - deciding where decisions will be made, who will do what job and tasks, and who will work for whom Leading - inspiring and motivating workers to work hard to achieve organizational goals Controlling - monitoring progress toward goal achievement and taking corrective action when needed

Examples of cognitive biases

Prior hypothesis bias—prior beliefs about the relationship between 2 variables tends to make decisions based on those beliefs even when evidence suggests otherwise. Escalating commitment—committing even more resources to failing projects. Reasoning by analogy—oversimplifying a complex situation Representativeness—tendency to generalize from a small sample Illusion of control—overemphasize one's ability to control events. Availability error—assuming the probability of an outcome based on how easy it is to imagine. Confirmation bias--a tendency to search for or interpret information in a way that confirms one's preconceptions Framing bias—the way in which a problem or decision is presented can affect how it is perceived.

Programmed vs. non programmed decisions

Programmed decisions - Problem is frequent, repetitive, routine with much certainty regarding cause & effect relationships; Decision procedure depends on policies, rules, etc. Non programmed decisions - Problem is novel, unstructured, with much uncertainty regarding cause & effect; Decision procedure needs creativity, intuition, tolerance for Ambiguity, creative problem solving.

Definition of competitive advantage

Providing greater value for customers than competitors can.

Difference between proximal & distal goals

Proximal goals are short term goals or sub-goals Distal goals are long-term or primary goals

The 3 models of decision making

Rational Model Bounded Rationality Model Garbage Can Model

Definition of satisfice

Selecting the first alternative that is good enough because the costs in time & effort are too great to optimize. A satisfactory level of a particular performance variable is obtained instead of the theoretical maximum level.

Impact of the management agreement

Setting the standard. No favoritism. Not being selfish. Not losing your temper.

Definition of Heuristics

Short cuts in decision making that save mental activity.

3 elements of environmental complexity

Simple - few environmental factors that affect organizations. Complex - many environmental factors that affect organizations. Resource Scarcity - The abundance or shortage of critical resources in an organization's external environment.

3 types of plans based on frequency

Single use plans—plans that address unique events that do not reoccur Standing plans—plans used to handle events that reoccur frequently. Contingency plans—plans formulated to address specific possible future events that might have a significant impact on the org.

3 types of Managerial competencies

Skills Values Motivational Preferences

Characteristics of SMART Goals

Specific—goals are precise, describing particular behaviors & outcomes. Measurable—desired results can be quantified. Attainable—must be achievable but challenging. Relevant -contribute to the organization's overall mission & be consistent with its values, including ethical standards. Timely—specify a target date for completion.

Managerial Values

Stable evaluative beliefs that guide our preferences for outcomes or courses of action in a variety of situations. They are perceptions about what is good or bad and tell us what we ought to do. They serve as a moral compass.

6 step planning process

Step 1 Situational analysis Step 2 Generate alternative goals & plans Step 3 Evaluate goals & plans Step 4 Select goals & plans Step 5 Implementation Step 6 Monitor & Control and Repeat Step 1!

Barriers to exit

Stops firms from reducing capacity even when demand is weak & excess capacity exists. The fixed costs of closing down capacity An unwillingness to reduce capacity due to a belief that demand will soon rebound Government regulations prevent capacity reduction

Organizational subcultures

Subcultures potentially create conflict & dissent among employees, but they also serve 2 important functions: They maintain the organization's standards of performance & ethical behavior. Employees in the counterculture are an important source of surveillance & critique over the dominant order. They encourage constructive conflict & creative thinking. They help the organization to abide by society's ethical values. They are the spawning grounds for emerging values that keep the firm aligned with the needs of customers, suppliers, society & other stakeholders.

Examples of Managerial skills & levels of importance

Technical Skills - important at lower levels Human skills - Most Important for all levels Conceptual Skills - important at higher levels Motivation to manage - important at higher levels

Definition of organizational culture

The basic pattern of values & assumptions shared by employees within an organization and seen visibly by artifacts

Definition of General (Macro) environment

The economy and the technological, sociocultural, political/ legal, demographic & international forces/ trends that indirectly affect all organizations. The general environment impacts the firm through its influence on the task environment. (Generally indirectly)

Max Weber & Bureaucracy

The exercise of power on the basis of knowledge. People led by virtue of rational-legal authority in other words, their knowledge, expertise, or experience. Furthermore, the aim of bureaucracy is not to protect authority, but to achieve an organization's goals in the most efficient way possible

Brainstorming/Electronic Brainstorming

The more ideas the better. All ideas are acceptable. Other members' ideas should be used to come up with even more ideas. Criticism or evaluation of ideas is not allowed. No praise of ideas is allowed. Combination & improvements on ideas that have been previously presented are encouraged.

Henri Fayol's Functions of Management & 14 Principles (don't need to know all 14 just that he developed them)

The success of an enterprise generally depends much more on the administrative ability of its leaders than on their technical ability.

Fred Taylor & Scientific Management

The thorough study and testing of different work methods to identify the best, most efficient ways to complete a job.

Meaning of Contingency Management

There are no universal management theories; the most effective management theory or idea depends on the kinds of problems or situations that managers or organizations are facing at a particular time.

Definitions of Threats, Opportunities, Strengths & Weaknesses

Threat - managers typically take steps to protect the company from further harm: they arise from circumstances or developments in the external environment that may adversely affect the ability of managers to attain the goals of their enterprise. Opportunity - managers consider strategic alternatives for taking advantage of those events to improve performance: arise from circumstances or developments in the external environment that if exploited through strategies, enable managers to better attain the goals of their enterprise. Strength - an activity the organization is good at & is a potential source for competitive advantage. Weakness - an activity that the organization does not excel at & may be a source of competitive disadvantage.

Porter's 5 forces of the competitive Environment

Threat of entry of potential competitors. The power of buyers. The power of suppliers. The threat of substitute products. Intensity of rivalry between established firms.

Types of Managers and their duties

Top Managers - executives responsible for the overall direction of the organization Middle Managers - responsible for setting objectives consistent with top management's goals and for planning and implementing subunit strategies for achieving these objectives. First-Line Managers - train and supervise the performance of nonmanagerial employees who are directly responsible for producing the company's products or services. Team Leaders - managers responsible for facilitating team activities toward goal accomplishment

Definition of Specific (task/competitive) environment

Unique to a firm's industry: incudes actual & potential competitors, suppliers, & buyers: firms that provide substitute products & firms that provide complements. Directly affects the way its conducts daily business

3 levels of organizational culture (1 visible- 2 invisible)

Visible component: Artifacts such as stories & legends: rituals & ceremonies: organizational language: physical structure & décor. Invisible components: Shared values: conscious beliefs: evaluations of what is good or bad, right or wrong. Shared assumptions: unconscious, taken for granted perceptions or beliefs: mental models of ideals. Difference between shared, espoused, and enacted values Shared values: values that people within the organization or work unit have in common and place near the top of their hierarchy of values (part of culture) Espoused values: values people say they use & in many cases, think they use even if they don't Enacted values: values people actually rely on to guide their directions & actions.

Henry Gantt & the Gantt Chart

visually indicates what tasks must be completed at which times in order to complete a project