Management exam 2
approaches to performance appraisals
- Objective appraisals: Measure desired results They are harder to challenge legally - Subjective appraisals: Trait appraisals Behavioral appraisals
importance of strategic management
-positive impact on organizational performance -prepares managers to cope with changing situations -guides managers to examine relevant factors in planning future action Changes and trends occurring in competitive environment? Competitors? Their strengths and weaknesses? What does future hold for our industry? How can we change the game?
Leslie is Tom's supervisor and is preparing his annual performance appraisal. Leslie has information on Tom's performance from his employees, his own self-ratings, and her ratings of him. What type of performance review is Tom receiving?
360 degree feedback
employment tests for selection
Ability, Performance, Personality, Integrity, and Others
top management support
Change involves multiple departments or reallocation of resources Users doubt legitimacy of change
diversification strategy
Companies generally diversify to either grow revenue or reduce risk. They grow revenue because the company now has new products and services to sell.
market culture
Competitive culture valuing profits over employee satisfaction Compete, customer focus, productivity, market share, profitability, goal achievement
Porter's 4 competitive strategies
Cost-leadership strategy: keeping costs and prices low for a wide market (Walmart, mcdonalds) Differentiation strategy: offering unique and superior value for a wide market (Nike, apple) Cost-focus strategy: keeping costs and prices low for a narrow market (Dollar tree?) Focus-differentiation strategy: offering unique and superior value for a narrow market (Gucci, louis Vuitton)
reverse innovation
Creating innovative, low-cost products for emerging markets and then quickly and inexpensively repackaging them for sale in developed countries.
why do strategies fail
Employee resistance Manager behavior does not support new direction Inadequate budget or resources
clan culture
Employee-focused culture valuing flexibility, not stability Collaborate, communication, morale, people development
5 steps of planning and strategic management process
Establish the mission, vision, and values Assess the current reality Formulate the grand strategy and strategic, tactical, and operational plans Implement the strategy Maintain strategic control
classical or rational decision making model
How managers should be making decisions Identify problem Think of alternative solutions (obvious and creative) Evaluate alternatives and select solution (ethics, effectiveness) Implement and evaluate solution chosen
disruptive innovation
Innovations in products or services that typically start small and end up completely replacing an existing products or service technology for products and consumers
types of recruiting
Internal Recruiting: Hiring from the Inside Promote entry level to management position External Recruiting: Attract job applicants from outside organization Hybrid Approaches: Referrals - Tap into existing employees and find people they know Boomerang - previously worked there and then left and came back
programmed decisions
Involve situations that have occurred often enough to enable decisions and rules to be developed and applied in the future Happen frequently, do not have to think about it too much, hand off to other employees Ordering supplies
Managements by objectives
Jointly set objectives Develop an action plan Periodically review performance Give performance appraisal and rewards
nonprogrammed decisions
Made in response to situations that are unique, are poorly defined and largely unstructured, have important consequences Whether or not to fire someone
proactive change
Managing anticipated problems and opportunities
Which of the following is an example of a proactive change?
Mirabel implements an improved bonus incentive structure for her staff despite the fact that her employees are generally content.
Describe the different levels of corporate culture
Observable artifacts - physical manifestations of culture Espoused values - explicitly stated values and norms Basic assumptions - core values of the organization
different ways to train and develop employees
Onboarding: Helping Newcomers Learn the Ropes ( Transition) Learning and Development: Helping People Perform Better (Upgrade current skills)
How does a company's structure, culture, and HR practices work together?
Organization's culture, structure, and HR practices are three strands in a single rope - must be tightly woven together to drive successful strategic execution Culture: shared assumptions that affect how work gets done Structure: who reports to whom and who does what HR practices: how the organization manages its talent
disadvantages of rational model
Rational model is prescriptive à good in theory but not real Highly desirable assumptions Complete information, no uncertainty Logical, unemotional analysis
adhocracy culture
Risk-taking culture valuing flexibility Create, adaptability, creativity, innovation, growth
strategic management
Set of decisions and actions used to formulate and execute strategies that will provide a competitively superior fit between the organization and its environment to achieve organizational goals
Jorge's manager has given hum the following goal: "Profits should be increased in the coming year in order for employees to receive a monetary bonus" Which characteristics of effective goals is missing?
Specific and measurable
SMART goals
Specific, Measurable, Achievable, Relevant, Time-bound
hierarchy culture
Structured culture valuing stability and effectiveness Control, capable processes, consistency, measurement, efficiency, timeliness, smooth functioning
best interview
Structured: ask same questions every time Situational: hypothetical situation and see how you would behave Behavioral-Description: past experiences
5 way we can learn about an organization's culture
Symbols Stories Heroes Rites and rituals Organizational socialization
tactics for implementing change
Top management support Communication and education Participation Negotiation Coercion
What is the main difference between a vertical hierarchy of authority and a horizontal specialization?
Vertical hierarchy shows who reports to whom and horizontal specialization shows the different jobs
directive decision making style
action-oriented, focus on facts Low tolerance for ambiguity / oriented toward task and technical concerns Efficient, logical, practical, and systematic in their approach to solving problems, not as emotional
A Seattle-based software firm, Sysco, was growing rapidly and hiring frequently, but it primarily focused on campus recruiting at two Washington universities, UW and Seattle University. When one 45-year-old candidate did not get an interview after a phone screening, he went to the company's website and noted all of the young people in charge, so he filed a lawsuit under the
age discrimination in employment act
Bruce knows that one of the reasons people do not return to his furniture store is because of the slow services. How would a SWOT analysis classify the slow service at Bruce's store
as a weakness
Why managers make bad decisions
biases
analytical decision making style
careful, like lots of information and alternative choices Higher tolerance for ambiguity and respond well to new/uncertain situations Consider more information and alternatives than directive style Take longer to make decisions, careful, tend to overanalyze
Duhawk Depot just won the bid for a huge project. To ensure that everyone does the right work at the right times, a well-designed ________ will show who has authority over whom
chain of command
During which stage of Lewin's organization development does a change agent implement a specific plan for training managers and employees?
changing
organizational change
changing one person vs. changing organizational culture
types of cultures
clan, adhocracy, market, hierarchy
categorical thinking bias
classify people/information based on observed or inferred characteristics
Scott's Tots, Inc. is making some changes to the work schedules of its employees. Some of the employees are not happy with the changes. As their manager, Michael tells them that they can accept it or leave. Which of the following approaches to change implementation is Michael using?
coercion
benchmarking
comparing with the best
Maureen, a finance manager at ABC Industries, is asked by her boss to develop a plan in the event that company sales drop by 20 percent or more. This type of planning is known as:
contingency planning
different levels of strategy
corporate: what business should we be in business: how should we compete in the industry.. electronic, service, retail functional: how can business functions support business level strategies (finance, HR, operations, marketing)
tactical planning
could take months middle management Implement policies and plans of top level o Supervise activities of first-line managers below Make decisions often without base of clearly defined information procedures
operational planning
could take weeks first-line management and team leaders Direct daily tasks of nonmanagerial personnel Decisions often predictable Follow well-defined set of routine procedures
strategic planning
could take years, top level management Long-term decisions, overall direction of organization Pay attention to environment outside organization, future oriented, deal with uncertain and competitive conditions
Companies that practice reverse innovation:
create innovative, low-cost products for emerging markets and then quickly and inexpensively repackage them for resale in developed countries.
Symbols, stories, heroes, and rites and rituals are ways in which ________ is (are) most often transmitted to employees
culture
contingency planning
define company responses to be taken in case of emergencies, setbacks or unexpected conditions
a ___________ strategy can reduce rivalry with competitors and fight off the threat of substitute products because customers are loyal to the company's brand
differentiation
personal decision making styles
directive, analytical, conceptual, behavioral
external fit
exists when HR system aligns with organization culture and structure supporting business/org. level strategy Compete based on cost reduction and efficiency should provide targeted skills training and people should know exactly what they should be doing
internal fit
exists when individual policies and practices within HR system reinforce one another Hiring based on performance potential rather than experience, we need to provide them with extensive learning and training while on job
escalation of commitment bias
feeling overly invested in a decision despite negatively about it
operational planning should be completed ________ and tactical planning is done by _____
first-line managers; middle managers
BCG matrix: Stars
high growth, high market share - definite keepers
__________ refers to the activities undertaken to attract, develop, and maintain an effective workforce
human resource management
approaches to innovation
improvement and new direction
framing bias
influenced the way a situation or problem is presented to them
effective goals...
is a SMART goal Management must be committed Goals must be applied organization wide Goals must be cascade - be linked consistently down through the organization
BCG matrix: cash cows
low growth, high market share - income finances stars and question marks
BCG matrix: dogs
low growth, low market share, should be gotten rid of
BCG matrix: question marks
low market share, high growth- risky new ventures
groupthink and drawbacks
making decisions as a group Cohesiveness isn't always good. When it results in groupthink, group or team members are friendly and tight-knit but unable to think "outside the box." The results of groupthink can include failure to consider new information and a loss of new ideas.
Kickstarter, a global crowdfunding platform, states that its purpose as an organization is "to help bring creative projects to life." This is the company's
mission statement
sunk-cost bias
money already spent seems to justify continuing
why use non-rational decision making style
more descriptive and situational/emotional logic
behavioral decision making style
most people-oriented Work well with others and enjoy social interactions in which opinions are openly exchanged Supportive, are receptive to suggestions, show warmth, and prefer verbal to written information Have a tendency to avoid conflict and to be overly concerned about others Wishy-washy approach to decision making and to have a hard time saying no
organizational development
o A set of techniques for implementing planned change to make people and organizations more effective Improving individual, team, and organizational performance Revitalizing organizations Adapting to mergers
forms of change
o Adaptive change Least threatening We have seen things like this before o Innovative change Somewhat threatening Something new for this company o Radically innovative change Very threatening Brand new thing in our industry
communication, education
o Change is technical o Users need accurate information and analysis to understand change
coercion
o Crisis exists o Initiators clearly have power o Other implementation techniques have failed
negotiation
o Group has power over implementation o Group will lose out in the change
human resource management
o Human resource management: process of planning for, attracting, developing, and retaining an effective workforce o Effective HRM means putting employees first
why do employees resist change
o Individuals' predisposition toward change o Surprise and fear of the unknownc o Climate of mistrust o Fear of failure o Loss of status or job security o Peer pressure o Disruption of cultural traditions or group relationships o Personality conflicts o Lack of tact or poor timing o Nonreinforcing reward systems
participation
o Users need to feel involved o Design requires information from others o Users have power to resist
Customers often comment on the ________ at Dan's Delicious Desserts. The employees are engaged, knowledgeable, and friendly to the point that customers describe it as a family-like atmosphere. Their "social glue" is so strong they even do things together outside of work
organizational culture
According to the competing values framework, the four types of ________ are clan, adhocracy, market, and hierarchy
organizational cultures
overconfidence bias
people's subjective confidence is greater than objective accuracy
forecasting
predicting the future -trend analysis -contingency planning
a department store's return's policy is an example of a ______ decision
programmed
shawn and his partner, nam, have decided to update their firm's computer network, although they have no expertise in this area. Recently they discussed the many constraints on their decision, such as complexity of technology, limited time and money, imperfect information limitations are hindrances to
rational decision making
BP's efforts to close the blowout preventer and install a containment dome following an explosion on the Deepwater Horizon drilling rig is an example of ________ change.
reactive
To ________, Lee, an HR manager, shares his company's job openings on social media and online job postings
recruit from outside the organization
conceptual decision making style
rely on intuition and have long-term perspective High tolerance for ambiguity and tend to focus on the people/social aspects of a work situation Take broad perspective to problem solving and like to consider many options and future possibilities Adopt long-term perspective, rely on intuition and discussions with others to acquire information Willing to take risks and good at finding creative solutions to problems
reactive change
responding to unanticipated problems and opportunities
confirmation bias
seeking information to support your point of view and discount data that does not support it
DBQ Co. has a reputation for reliability and customer service, qualities that helped to build this highly respected name brand over the last 15 years. Speaking at a recent business conference, Ken, the CEO, told his audience, "We have built our reputation by changing little over the last several years, but consistently helping customers with great, caring service and a reliable product." Which type of strategy does DBQ Co. use?
stability
porter's 5 competitive forces
strategies originate in these forces in the firm's environment 1. Threat of new entrants 2. Bargaining power of suppliers 3. Bargaining power of buyers 4. Threat of substitute products or services 5. Rivalry among competitors
SWOT analysis
strengths and weaknesses: internal culture, work process, product, staff, service levels, financial resources Opportunities and threats: external market segment, industry and competition, impact of technology, governmental impacts
representative bias
tendency to generalize from small sample or single event
anchoring and adjustment bias
the tendency to make decisions based on an initial figure
Evidence based decision making
the translation of principles based on best evidence into organizational practice, bringing rationality to the decision-making process 7 implementation principles : Treat organization as unfinished prototype No bragging, just facts See yourself and organization as outsiders to Evidence-based management is not just for senior executives Like everything else, you still need to sell it If all else fails, slow the spread of bad practice Best diagnostic question: what happens when people fail?
differentiation strategy
to offer products or services that are of unique and superior value compared with those of competitors but to target a wide market
OD steps
unfreezing, changing, refreezing
A(n) ___________ interview is susceptible to legal attack because some questions may infringe on non-job-related matters such as privacy, diversity, or disability
unstructured
availability bias
using information available from memory to make judgements
hindsight bias
viewing events as more predictable than they really are (I knew it all along)
vision statement
what do we want to become
mission statement
what is our reason for being
values
what values do we want to emphasize
Mission statement expresses ________ and a vision statement expresses ___________
why the organization exists what the organization wants to become
