WGU - D073 - Best Practices in Management: Projects, Staffing, Scheduling, and Budgeting
Organizational values
It is the Process 3: Organizational values are a statement of the way the organization is expected to act and behave. It is a statement of the culture.
Organizational goals
It is the Process 4: Goals are specific targets that are to be met to arrive at the mission of the organization.
Develop mission statement
It is the Step 1 A company's mission statement will establish the framework for goal setting.
Create strategic goals
It is the Step 2 Strategic goals are created in alignment with the company's vision and mission statements.
Identify objectives
It is the Step 3 Objectives are identified to create the methods for the achievement of strategic goals.
Define performance measures
It is the Step 4 Performance measures are defined to determine the gap between goals and current outcomes.
Establish deadline
It is the Step 5 A deadline is established to provide an end date for goal achievement.
Contingency theory predictions
It predicts that effective leaders are those whose personal traits match the needs of the situation in which they find themselves
Plan
· The planning process may reveal the need for a new or an improved strategy, which is then reflected in changes to tactical and operational plans.
Competitive Strategies
determine how to price and market products.
Decentralized organizational drawback
feeling of decreasing control from higher levels of administration.
Lesson 7 Summary: 😏> <)) _/|_
* A broad mission statement makes it easier to remember and provides latitude in case the company is presented with an unexpected opportunity. However, the lack of definition makes it difficult for managers to use it to give direction to employees. * There should be clear alignment between everyday tasks, objectives, the mission, and the vision of the organization.
Successful strategies
Must include both strategic goals and tactical plans in order to be successful.
4 main components of Operational Strategy
1. Allocation of resources, 2. Organizational design, 3. Portfolio management 4. Strategic trade-offs.
Project management Key Considerations:
1. Define the project 2. List all the tasks associated with the project 3. Estimate resources needed (Time and Cost): 4. Identify constraints and considerations: 5. Develop implementation plans:
A budget should:
1. Describe management's assumptions (anything that is accepted as true or certain to happen, without proof) relating to the state of the economy over the planning horizon.
4 Full-range theory essential qualities of a good leader
1. Individualized consideration 2. intellectual stimulation 3. Inspirational motivation 4. Idealized influence:
4 Main Steps of The Strategic Management Process
1. Strategic objectives and analysis 2. Strategic formulation 3. Strategic implementation or strategic execution 4. Strategic evaluation and control
Fiedler's contingency model focused in three key areas:
1. The leader's personality, 2. The task itself, 3. whether the leader can exert control over the group.
The optimal cash balance is determined by looking at the four reasons for holding cash:
1. Transactions 2. Precautionary measures 3. Speculative measures 4. Financial measures
Performance Metric Involves
1. establishing critical processes or customer requirements 2. identifying specific, quantifiable outputs of work 3. setting targets against which results can be scored2
What is the focus of the full-range theory of leadership? 1. Effective leaders focus on the current circumstance to identify what is necessary for the situation. 2. Effective leaders focus on identifying equitable exchanges between leader and follower. 3. Effective leaders focus on engaging in the correct actions. 4. Effective leaders focus on motivation and morale by connecting the employee's sense of identity to a project and the organization.
4 The full-range theory of leadership is a component of transformational leadership and focuses on employee motivation and morale by connecting the employee's sense of identity to a project and the identity of the organization.
Which one is not part of the 4 fundamental management tasks: 1. planning, 2. organizing, 3. leading, 4. demonstrating
4. Demonstrating, The four fundamental management functions are: 1. planning, 2. organizing, 3. leading, 4.controlling
What is the purpose of using Lean techniques in change management? Reducing process inefficiencies Aligning operations with the mission Creating transformational change Analyzing need for improvements
A Lean project is intended to make small process changes such as reducing waste and inefficiencies. It is not a project involving a large scope of change in the organization.
A professional was hired by an organization to administer the many intricate details involved in the operation of the business. Which role is being fulfilled by this professional? Manager Entrepreneur Leader Consultant
A manager administers the intricate details involved in the operations of a business. Managers perform the operations function in a business and typically do not establish a direction for the business. This is the role described in this scenario.
The president of a company decides to divide the marketing department into a domestic and a foreign section so that customer needs are better met.
A change in a department, such as being divided into two separate departments, is a structural change for the organization.
Emergent
A change that is not planned. It is the opposite of the top-down change approach.
Honesty and integrity
A commitment to the truth (not being deceitful), where word and deed correspond Words followed by Actions
Transactions:
A company must hold enough cash to cover its outstanding payments or transactions.
Precautionary measures:
A company needs to maintain cash for unexpected disbursements.
Which external force motivates a fast food restaurant chain to initiate a change project? A competitor adds healthy menu items that will attract customers. State worker compensation rates decline due to fewer accidents. Food service employees reach out to the local union for organizing information. The board of directors conducts a nationwide search for a new president.
A competitor adds healthy menu items that will attract customers. When a competitor adds a new product that could take customers away from the fast food restaurant, this outside force would initiate a change project.
Attainable == Team input
A goal is best attainable when the team or employees who are working on the goal have an input in setting it. A SMART goal must be achievable with stakeholders providing input in the decision process.
Measurable == Quantifiable
A goal needs to be measurable in a very defined quantitative manner for it to be SMART. A SMART goal must be measurable or quantifiable in some manner.
A hardworking, dependable employee is struggling to perform a particular job. What is the first step a manager should take before assigning this employee to another job? Identify the employee's strengths and weaknesses Refer the employee to human resources for an evaluation Provide the employee with training and a mentor Contact the employee's union representative for suggestions
A great manager understands an employee's strengths and weaknesses before determining the best approach to help a struggling employee.
Knowledge of the business:
A high degree of understanding of the company, industry, and technical matters
Drive
A high level of effort, including a strong desire for achievement as well as high levels of ambition, energy, tenacity, and initiative
Value Statement == Earth-friendly
A value statement identifies what the company values.
Role of Managers
A manager's work includes planning, organizing, staffing, leading, directing, and controlling the activities of individuals, teams, or whole organizations to accomplish a goal.
Mission == Best provider of their product
A mission statement identifies how a company wants to be known by its stakeholders.
Specific == 99.9% error-free production
A specific objective identifies what a company intends to achieve, using qualitative and quantitative measures
Income statement
A summary of all of an organization's revenues and expenses during a predefined period of time.
Time-bound == By the end of the coming year
A time-bound objective identifies the timeline for completion of the objective.
Lesson 1 Summary: 😏> <)) _/|_
A vision is defined as a clear, distinctive, and specific view of what a company would like to achieve in the future. The mission statement defines the organization's goals, values, and reason for existence. Leaders cannot accomplish their goals alone, so they motivate others to join them. The ability to influence others to buy in to their mission is key to leaders' success. Many theories exist about what characteristics, situations, or personality traits are necessary to become a leader.
Vision vs. Mission
A vision statement describes where the organization wants to be in the future; while the Mission statement describes what the organization needs to do now to achieve the vision One must support the other.
How can areas that needs change can be identified?
Areas that need to change can be identified through interviews, focus groups, observation, and other methods of internal and external research.
Specific:
An operational objective should be specific, focused, well defined, and clear enough that employees know what is expected. A specific objective should identify the expected actions and outcomes. Laying out expectations helps employees stay on track and work toward appropriate goals.
business indicators
Are numbers that may indicate a positive or negative trend.
Leader:
Accepted by their followers. Power from Influence and ability. Persuade others to follow them.
The president of a company creates an assistant manager position for each team to help with the training of new recruits.
Adding a position to each team is a structural change for the organization.
5. Develop implementation plans:
Adjust inventory levels across quarters. Initiate new training programs for staff. Add new materials, supplies, and equipment to manufacturing. Advertisement and marketing of new products.
Lesson 4 Summary : 😏/ <)) _/\_
After clear objectives have been written to support the mission, the next step is writing a strategic plan to achieve the vision. Operational strategies are defined as the methods an organization uses to meet its goal to produce a good or implement a service of excellent customer value. With a strong strategy, a company can focus its efforts on the most valuable activities that align with its overall mission and vision.
Cost of Goods Sold (COGS)
All costs in material, labor, and overhead that are directly required for the production and/or given good. (COGS) is a highly relevant indicator for the health of business operations, as it is a variable cost directly applied to each item sold on a per-unit basis.
Chief marketing officer (CMO), Cynthia Troutman, was tasked with developing and communicating a marketing brand to win over new customers for the new rechargeable battery. Which managerial attribute should she use to successfully complete this assignment on this tight timeline? Allocating proper resources Taking on risk Creating vision Eyeing the horizon
Allocating proper resources. Managers are responsible for working through and with others to efficiently and effectively complete activities that meet the goals of the organization.
Corporate == Allocate resources
Allocation of resources involves determining how the company will divide its resources. A corporate strategy determines how a company will conduct its operations in order to satisfy its mission and vision.
Centralized organizational benefits
Allows consistency and control over decisions
Self-confidence:
An assurance in one's self, one's ideas, and one's ability
Leadership motivation
An intense desire to lead others
Realistic:
An objective should be realistic as well as ambitious. It should take into account the available resources and time.
Measure:
An operational objective should be measurable and quantifiable so people can assess whether it has been met or not. For example, "increase annual sales revenue by 10%" is a measurable objective.
A master budget is:
An overall budget a company uses to make sure its expenses in all areas fall within its financial parameters. It is used to evaluate an organization's success at operationalizing its strategy.
Customer-Driven Strategies
Any activities a company needs to undertake to meet the few needs of many customers It focuses on meeting the needs of the customer. Also it focus on the development of products and services, including design, innovation, and value to best satisfy the customer
The manager initiates a new system that encourages employees to give positive shout-outs when they see their peers doing something for someone else
Any adjustments to the typical patterns of behaving within the organization would be a cultural change.
Managers
Appointed to their position. Power derived from the organization. Uses their authority to get compliance.
Organization Mission: Objectives
Are a series of measurable actions, are usually written to provide more detail. Objects states what will be accomplished when it will be done by, and how much will be done.
Organizational vision
It is the Process 1: The organizational vision is the overarching, long-term view of what the company desires to be in the future.
Strategic formulation ==Objectives and goals
Based on the internal information obtained from the internal investigation, goals and objectives are formulated. Goals are broad, primary outcomes the organization is hoping to achieve. Objectives are measurable, quantitative statements a manager can use to evaluate an organization's, department's, or employees' progress toward meeting their goals.
Manager securing power
Based on: Position, Larger organization Reward and punishment system You are expect to act and behave
Leaders securing power
Based on: The followers' perceptions of their knowledge Their personality The working relationship that has developed between leaders and followers
What do job costing and process costing for projects have in common? Both are for a single long-term product. Both are for different jobs with varied production requirements. Both have costs accumulated by department. Both have predetermined overhead rates.
Both have predetermined overhead rates. Job costing and process costing both have predetermined overhead rates.
Lesson 3 Summary: 😏/ <)) _/\_
Both management and leadership are necessary skills, and they often overlap with one another. Many roles will have both a leadership and a management component to them. Examining your skill set to determine whether you would be an effective leader is important. Understanding the difference between leadership and management will help you determine which roles are a "best fit" for your skill set and which of your skills you may choose to enhance.
Lesson 9 Summary: 😏> <)) _/|_
Budgeting combines planning and control. The budget not only reflects the objectives and mission of the organization but also is a mechanism of control. The budget puts financial constraints or restrictions on the choices or projects a manager may choose to implement. Managers must take care not to allow assumptions to cloud their judgment about how best to manage a project. Forecasting is an imperfect science. Add unforeseen circumstances, external factors, and personal assumptions, and you can see why projects can easily be derailed. · The first step in the planning process is awareness. It is at this step that managers build the foundation on which they will develop their plans. · The Deming Cycle is a planning tool that advocates for planning, doing, checking, and then acting. · Decision-making in many departments of an organization is based on the sales forecast. · Taking the time to be as accurate as possible in this forecast may lead to a more realistic budget. · The reason most businesses fail is that they run out of cash. Watching cash flow is a significant component of the manager's responsibilities. · An assumption that something is true without any proof can lead to inaccurate decision-making. Managers must watch for potential biases that may lead them to make incorrect assumptions about the feasibility of a plan. · A constraint or restriction is a limitation put in place by financing, hours, environmental factors, or skills. · Sunk costs are monies that have already been spent and cannot be recovered. These costs should not be included in decision-making. · Any time a manager decides to spend money on one opportunity that same money is not available to finance another opportunity. This is called the opportunity cost.
How an organization is strategically moved from its current state towards its vision? By establishing a strong organizational structure By establishing a mission statement along with a series of well-defined objectives. By emphasizing employees cultural diversity By creating a better work environment
By stablishing a mission statement along with a series of well-defined objectives.
The chief marketing officer (CMO), Cynthia Troutman, is setting SMART goals for developing the new marketing brand for Sure Start. One of the goals involves increasing new customers for the rechargeable electric batteries. Which SMART goal should be used to obtain this result? By the end of the calendar year, buy placement in the top auto industry print publications in U.S., German, and Chinese markets Advertise in magazines in all of the countries where Sure Start wants to attract new automotive customers and offer discounts Increase the number of new customers who have heard of Sure Start's rechargeable electric battery through advertising and promotion Send emails to the top auto manufacturers worldwide to promote the new electric battery product line as an eco-friendly choice
By the end of the calendar year, buy placement in the top auto industry print publications in U.S., German, and Chinese markets It is clear, measurable, time-bound, and motivating.
Organizational mission
It is the Process 2: The organizational mission is the purpose for which the organization exists. The vision should flow into the mission.
Organizational design:
Centralized and Decentralized organizational systems The design needs to reflect maximum efficiency and flexibility.
Lesson 13 Summary: 😏> <)) _/|_
Change is difficult for everyone. There are many obstacles to overcome when trying to change processes. Issues with implementation methods, poor communication, or ineffective leadership may create a vacuum in an environment. In addition, a lack of technology skills, inadequate training, and fear of losing power or even their job increase every employee's stress level during a period of change. As a leader, it is important to consider any expected or unexpected barriers to organizational change.
Other traits:
Charisma, creativity or originality, and flexibility/adaptiveness (Kirkpatrick & Locke, 1991)
Centralized organizational structure
Common organizational structure tend to be a thearchy The decision is made by key individuals and passed down to employees
Core competencies == economies of scale
Companies create economies of scale when they produce at a volume that allows them to reduce their costs of producing each individual unit. A strategy based on core competencies emphasizes a company's competitive advantage and how its skills and capabilities differentiate it.
Customer-driven = Specialize in one product or service
Companies that specialize in one product or service are known in the marketplace for their specific brands of goods. A customer-driven strategy focuses the company's operations on satisfying customers by providing value that is identifiable
Manager Responsibilities Keywords: Efficiently and effectively
Complete activities that meet the goals of their organization through the execution of four fundamental management functions: 1. planning, 2. organizing, 3. leading, 4.controlling
Cognitive ability:
Conceptually skilled, capable of exercising sound judgment, having strong analytical skills, and possessing the capacity to think strategically and multidimensionally
During which stage of project management are success factors identified? Defining the project and list all necessary tasks Considering constraints on time, money, and resources Developing detailed implementation plans Estimating the resources needed
Considering constraints on time, money, and resources All projects have risks that can affect success of the business. These are considered and documented at this step, step 4.
Which aspect of project management requires identifying limits or risks to the project? Definition Estimation Plans Constraints
Constraints Project constraints explain what limits or risks are associated with the project. For example, an economic downturn could result in customers spending less on a company's product, which presents a risk to a company that is investing in producing a new product.
Community relations:
Contact must be maintained and nurtured with representatives from various constituencies outside the company, including state and federal agencies, local civic groups, and suppliers.
As the leader of the organization, in which task must Charlie Wicker excel for Sure Start to be successful? Controlling existing circumstances Establishing a direction Administering detailed processes Implementing the plan
Establishing a direction. This task is the essence of leadership, which is Charlie's job for Sure Start.
Coordinating:
Coordinating the resources and functions of a business. A key element to coordination includes: 1. regular meetings between management and staff Coordinate the work of others both inside the work unit and out. The right amount and type of resources get to the correct employees and that they are efficiently and effectively used
Michael Porter Scheme for three most effective strategies.
Cost leadership Differentiation Market segmentation
The success of a company stems from its ability to create strong economies of scale and use efficient operations. Which competitive operational strategy is this company employing? Cost leadership Differentiation Market variation Speed to market
Cost leadership succeeds when firms can keep costs low, run efficiently, sell in high volume, and create strong economies of scale.
Which leadership attribute does Charlie Wicker demonstrate during the expansions being undertaken by Sure Start? Manages the process Enacts the direction Creates a vision Eyes bottom line
Creates a vision. A vision describes where a company wants to be in the future. Charlie wants Sure Start to enter into the rechargeable battery market.
Which information does a projected income statement report as a function of the budget-planning process? Deferred revenue Sales plan Market share Current profit
Current profit The projected income statement contains sales and other data from the previous financial period. This provides information on current profit and expenses.
Additions to The Five functions are:
Customer relations and marketing Community relations Internal consulting Monitoring products and services
2. List all the tasks associated with the project
Customers will choose between various specialized furniture characteristics and embellishments - including style, stain, wood type, and engraving.
Customers == Satisfaction and Loyalty
Customers' KPIs measure value creation. Customers use KPIs to either be a promoter or detractor of a company.
Which element of project management requires budgeting for customer choices? Implementation initiative Production timeline Inventory requirements Customization costs
Customization costs Determining the cost of product customization is important to establish. Identifying the costs associated with each customization option is important in budgeting for customer choices.
Which leadership style considers company culture and employee attitudes when making process changes? Rational Integrated Panacea Continuous
Integrated An integrated leader incorporates knowledge of the culture, people's feelings about change, and other aspects of human capital when initiating and making changes.
Time-constrained == Deadline
Deadlines help motivate work to meet a target date or dates. A SMART goal must have a well-defined deadline such a target date.
Decentralized organizational structure
Decision making are distributed among employees Less middle management. More innovation, creativity. Tend to be an Adhocracy culture.
A strategy or action plan
Defines its competitive advantage and delineates how it will achieve economic, social, and environmental performance objectives; It helps bridge the gap between the long-term vision and the short-term decisions
What is a purpose of the first step in Lewin's change model? Demonstrating the urgency for change Creating a change history of small wins Rewarding people who embrace change Understanding the change obstacles
Demonstrating the urgency for change The first step in Lewin's change model is unfreezing. Demonstrating the urgency for change is one of the purposes of this step.
A manager, who is acting as an internal consultant, is asked for a product recommendation. Which activity is this manager performing? Determining appropriate software to be purchased Developing a comprehensive long-range plan Coordinating work with several departments Overseeing the work of subordinates
Determining appropriate software to be purchased. Using expertise to help solve a problem represents internal consulting. Therefore, this is the correct answer.
Decisional: Role of a crises handler
Disturbance or crisis handler role depicts managers who must involuntarily react to conditions
Strategic objectives and analysis == Internal Investigation
During this first stage, organizations need to evaluate political, economic, social, technological, environmental, and legal factors that may affect an organization's strategy by performing an internal investigation typically using a SWOT analysis.
What is a function of leadership? Establishing vision and mission Focusing on processes Maintaining order and stability Executing strategic plans
Establishing vision and mission is a function of leadership. Leadership focuses on setting direction for a company, and establishing a vision and mission is the most significant way in which this occurs.
Updates to controlling
Finally, any updates to controlling systems and processes will potentially involve changes to employees' assigned tasks and performance assessments, which will require astute change management skills to implement.
Lesson 8 Summary: 😏> <)) _/|_
Financial accounting is the subdivision of accounting that prepares financial reports for people external to the organization. Managerial accounting prepares financial statements and reports for internal use. Internal financial statements are used to supply managers and employees with the necessary information to complete their tasks. Assets, liabilities, and ownership equity are listed as of a specific date, such as the end of the company's financial year. The production budget consists of the costs inside the organization. Cost is a financial measure of the resources used or given up to achieve a stated purpose. Direct materials and direct labor are the raw materials and the labor that can be directly traced to a specific product. Overhead refers to all costs of making the product or providing the service—except those classified as direct materials or direct labor.
What are the two major components of the master budget? Financial and operating budgets Selling and administrative budgets Capital expenditures and cash budgets Direct materials and overhead budgets
Financial and operating budgets The master budget is composed of the operating budget and the financial budget.
Costs:
Financial measure of the resources used or given up to achieve a stated purpose.
Financial perspective == Resource Use
Financial perspective KPIs measure the company's return on investment.
Corporate leadership of a company informs the sales managers that they will need to adopt and use differentiation strategies to help improve operational performance at the beginning of the next fiscal year. Which action should the sales team take to meet this directive? Sell a large volume of goods at a low cost Liquidate existing inventory to create new sales opportunities Focus on strengthening the company's branding Target a segment of the market that is not being addressed
Focusing on branding is a key element of the differentiation competitive strategy.
Executives at a manufacturing company have started a change initiative focused on retooling the production process to be more efficient. Which group will resist this change due to possible job loss? Assembly trainers Executive team Frontline workers Sales force
Frontline workers Frontline workers may be concerned about job losses. Involving them in understanding the need for change will reduce staff morale problems. It will also prevent workers from undermining the change process.
Strategic formulation
Goals and objectives are written based on the information obtained from the PESTLE and SWOT analyses Broad goal and Primary Outcomes The objectives are measurable, so managers can evaluate them and identify the progress to achieve the organization's goal. Based on that data, the organization can identify: The need for additional resource The level of threat Change any internal process
Michael Porter: Cost leadership
Haigh volume of goods in a low cost (compared to competition) Pertains to a firm's ability to create economies of scale through extremely efficient operations that produce a large volume
A job cost system examples are:
Homebuilders, caterers, consultants, law and accounting firms.
As Sure Start works to establish their offices in Germany and Vietnam, its managers will be doing so in cultures that they are not familiar with and will be hiring local employees to fill the positions. According to Robert Katz, which managerial attribute will support expansion into these new markets? Technical skills Conceptual understanding Human relation skills Long-term vision
Human relation skills These are the interpersonal skills managers use to accomplish goals.
What is the function of a tactical plan? Emphasizing future operations Committing significant resources Creating long-term goals Identifying short-term actions
Identifying short-term actions. A tactical plan identifies the steps required to achieve the strategic goals of the organization. The plan is specific and is adjusted as the strategic goals are changed based on organizational and environmental conditions.
Speculative measures:
If a company is anticipating making an investment, it will hold a speculative amount to take advantage of opportunities in the marketplace.
Lesson 11 Summary: 😏> <)) _/|_
In change management, managers use their ability to plan, organize, lead, and control. Change in organizations can be structural, technological, or cultural. Conner identified six different leadership styles. Each may be appropriate in different circumstances. An integrated or continuous leader is required in a time of transformational changes. Leaders of change must communicate effectively, align strategy with vision, track progress, support employees, counter-resistance, and empower employees.
Financial measures:
In order to acquire assets, retire debt, or meet some significant event, a company must accumulate and hold a certain amount of cash.4
Decisional: Role of an Entrepreneur
In the role of entrepreneur, managers seek to improve their businesses, adapt to changing market conditions, and react to opportunities as they present themselves. Therefore, managers initiate change.
Informational: Role of a Presenter or Spokesperson
In the spokesperson role or Presenter, managers present information to people outside their organizations. High risk, but the rewards a great for the company and image o the company, brand.
3. Estimate resources needed (Time and Cost):
Including of existing and expected materials costs. Addition of new costs - design consultation, manufacturing equipment adjustments, custom supplies.
The head of the information technology (IT) department gathers, collates, analyzes, and disseminates information on a new computer networking project. Which management role is being performed by the head of this department? Decisional Informational Liaison Interpersonal
Informational The informational role is to gather, collate, analyze, and disseminate information. Managers who are performing this role become information resource centers.
Internal business processes == Infrastructure and technology
Internal business processes KPIs measure how the company is meeting its mission.
4. Identify constraints and considerations:
Inventory requirements Quarterly production demands Employee resourcing Retail pricing adjustments External economic forces Competing priorities
Allocation of resources
Involves both people and capital Identify employees strengths and weakness and place them where they can be more productive. Since money is limited to every organization employees need to be placed where there is a better return to the corporation investment.
Balance sheet
Is a statement of assets, liabilities, and capital for an organization at a particular point in time.
Just-in-time inventory system
Is an inventory method designed to increase efficiency, decrease wastes and cut costs by having the inventory on hand that is currently needed to fill orders.
Vision
Is defined as a clear, distinctive, and specific view of what a company would like to achieve in the future
Michael Porter: Market segmentation
Is narrow in scope and is a cross between the two strategies. Segmentation targets finding specific segments of the market, which are not otherwise tapped by larger firms
Tactical plans.
Is the same as short-term strategy
Change management
Is the study of how to integrate changes without damaging the organizational culture or efficiency. At its core, change management is about knowing strategically what to change and how to manage the human element of this process.
More about Core competencies
It can only give an organization an advantage if they provide: Value to the customer, Differentiate the company from its competitors, Are extendible or able to be applied in more than one area
Organizational change
It can take many forms. It may involve a change in a company's structure, strategy, policies, procedures, technology, or culture. The change may be planned years in advance or may be forced on an organization because of a shift in the environment. Organizational change can be radical and swiftly alter the way an organization operates, or it may be incremental and slow.
What is a master budget ?
It consists of a projected income statement (planned operating budget) and a projected balance sheet (financial budget) showing the organization's objectives and proposed ways of attaining them. The master budget is not a single budget but is instead a series of budgets that operationalize the organization's strategy.
What is the purposes of a transformational leadership
It enhances motivation and morale by connecting the employee's sense of identity to a project and the collective identity of the organization
SWOT analysis
It is a strategic plan that is utilized to assess an organization's Internal: Strengths Weakness External: Opportunities Threats
Purpose of a Budget
It is a tool that managers use to plan and control the use of scare resources. A budget can reveal the company's objectives and how management intends to acquire and use resources to attain its objectives.
Transactional theories
It is based on an exchange between the leader and the follower. It means rewarding when doing something good punishing when doing something bad
Attainable:
It is crucial for all the stakeholders—especially the employees doing the work—to agree that the objective can be met. Unattainable targets can be damaging to employee trust and morale. Stretching to achieve a goal is good and can be motivating; having it be unreachable is not.
Realistic == Resource Availability
It is important that resources are available for the employees to meet the set goal. A SMART goal has to have appropriate resources for it to be realistic.
Leadership at an IT manufacturing company decides to outsource future production to decrease labor costs. The production team immediately goes on strike to demonstrate opposition to this decision. As a result, production stops. Which barrier to change does this represent? Customer Supplier Labor Technology
Labor People process barriers occur when people disagree with process changes and stand in the way of making a change. In this scenario, the production team has decided to go on strike and disrupt production to demonstrate its opposition to the outsourcing. This is a labor process barrier.
Time-bound:
Lastly, an objective should be time constrained. Having a deadline can help increase productivity and prevent the work from dragging on.2
A thriving organization is trying to encourage its managers to use their leadership attributes rather than their managerial attributes to engage employees. Which statement accurately describes this goal? Leaders are able to handle the day-to-day operations of the organization. Leaders have the full backing of the organization's board of directors. Leaders possess innate qualities from birth that many do not possess. Leaders do not necessarily need to be in a position of power to be successful.
Leaders do not necessarily need to be in a position of power to be successful. The power level is separate from a successful outcome. Many leaders are successful and yield little power.
Management and Leadership
Leaders pursue change and challenge the status quo, whereas Managers seek to control and provide stability within the existing circumstances.
Leadership Concept
Leadership per se is a relationship that revolves around the followers' acceptance or rejection of the leader. Leaders often emerge in situation occurrence in a group setting.
Learning and growth == Human Capital
Learning and growth KPIs measure effective utilization of nonfinancial resources.
Managerial Budgeting - Lesson 10
Lesson 10: Implementing the Budget Starts Here!! 😒/ <)) _|\
Change Management for Processes - Lesson 11
Lesson 11 - Changing an Organization's Process Starts Here!! 😒/ <)) _|\
Change Management for Processes - Lesson 12
Lesson 12: The Why and How of Change Management Starts Here!! 😒/ <)) _|\
Change Management for Processes - Lesson 13
Lesson 13: Resisting the Process of Change. Starts Here!! 😒/ <)) _|\
Management vs. Leadership - Lesson 1
Lesson 1: Attributes of Leaders Starts Here!! 😒/ <)) _|\
Management vs. Leadership - Lesson 2: Attributes of Managers
Lesson 2: Attributes of Managers Starts Here!! 😒/ <)) _|\
Management vs. Leadership - Lesson 3: Roles and Functions of Managers and Leaders
Lesson 3: Roles and Functions of Managers and Leaders Starts Here!! 😒/ <)) _|\
Process Skills for Managers - Lesson 4
Lesson 4: Operational Strategies Starts Here!! 😒/ <)) _|\
Process Skills for Managers - Lesson 5
Lesson 5: Long-Term and Short-Term Organizational Goals Starts Here!! 😒/ <)) _|\
Process Skills for Managers - Lesson 6
Lesson 6: Having SMART Goals Starts Here!! 😒/ <)) _|\
Process Skills for Managers - Lesson 7
Lesson 7: From Vision to Mission to Goals Starts Here!! 😒/ <)) _|\
Managerial Budgeting - Lesson 8
Lesson 8: Developing a Budget Starts Here!! 😒/ <)) _|\
Managerial Budgeting - Lesson 9
Lesson 9: Budgeting Responsibilities in Management Starts Here!! 😒/ <)) _|\
Over the course of the next three to five years, a firm looks to grow revenue by 10%, expand into two new geographic markets, and launch two new projects that are currently in the research and development stage. Which business component is being addressed by this firm? Long-term goals Grand strategies Short-term goals Vision statements
Long-term goals are mission-supporting activities that a firm seeks to accomplish within a three-to-five-year time frame.
Sure Start's mission is "to be the preferred mass producer of rechargeable batteries for electric cars" in the industry. Its vision is, "At Sure Start, we know it is important you know your car will start every time. That is why we are dedicated to producing quality batteries that work every time you start your car." Which statement accurately illustrates how Sure Start should use its goals to support this mission and vision? Long-term goals are only necessary if Sure Start decides to go in a different direction than the mission and vision. Short-term goals that are set annually will only matter to investors that Sure Start may use in the future to fund expansion programs. Short-term goals are not necessary for Sure Start to develop each year if its long-term goals follow the SMART goal guideline of being specific, measurable, achievable, realistic, and time constrained. Long-term goals will help Sure Start define where it intends to be in three to five years, while short-term goals will help focus on what needs to be accomplished within one year, in support of its mission.
Long-term goals will help Sure Start define where it intends to be in three to five years, while short-term goals will help focus on what needs to be accomplished within one year, in support of its mission. Long-term goals help with strategic strategies while short-term goals guide operational management.
Managers:
Management determines the objectives, Provides the direction, Allocates the necessary resources to achieve the organization's goals Have energy and initiative Personal knowledge of all aspects of the business Be a reference for information Facilitates the accomplishment of daily tasks
Who is responsible to ensure that each department and division identify current deficiencies and methods for improvement? Suppliers, by providing feedback about their experiences with Sure Start Batteries. Managers of individual departments, by working with each department's employees. CEO, Charlie Wicker, by identifying the best ways to implement his new research division. Chief Marketing Officer, Cynthia Troutman, by discovering how those deficiencies will undermine the new marketing strategy.
Managers This is a role of managers, to understand the challenges within their departments and to propose improvement methods.
Informational: Role of a Monitor
Managers are continually scanning the environment for information.
Mintzberg 10 manager roles or three categories
Mintzberg in his studying concluded that in order to full fill the job requirements managers assume many roles, then, Mintzberg identified 10 manager roles which can be classified in three categories. 1. Interpersonal 2. Informational 3. Decisional
Lesson 2 Summary: 😏/ <)) _/\_
Managers are responsible for working through and with other people to efficiently and effectively complete activities that meet the goals of their organization through the execution of five fundamental management functions: planning, organizing, leading, coordinating, and controlling. Managers have many roles and are found in all levels of the organization's hierarchy. Three main areas of skills are necessary to be an effective manager: technical skills, communication or human relations skills, and conceptual skills. Managers are necessary to help plan objectives and determine the mission of the organization.
Plan, organize, lead control (POLC)
Managers carrying out any of the plan, organize, lead, control (P-O-L-C) functions often find themselves faced with the need to manage organizational change effectively.
Planning
Managers develop the road map or series of objectives that must be met to achieve the goals of the organization. Must be willing to adapt to a changing internal and external environment Access resources available and anticipate future needs. Plans include both short- and long-term goals and objectives as they relate to the mission and vision of an organization.
Manager gets things done
Managers effectively get things done in the most efficient way possible to maximize profit.
Monitoring products and services:
Managers get involved in planning, scheduling, and tracking the design, development, production, and delivery of the organization's products and services.1
Leading
Managers must be influential leaders who can negotiate between parties, complete tasks, and lead employees. Managers must maintain a balance between the needs of the organization and the needs of an individual.
Customer relations and marketing
Managers must monitor customer satisfaction and develop policies on how to handle customer complaints. They also watch how effective the organization's marketing plan is and whether dollars are correctly spent to reach the market that will most likely buy their product.
Organizing:
Managers must utilize resources in the most effective way by: 1. Assigning tasks, 2. Delegating responsibilities 3. establishing authority. The two most important resources: 1. people and 2. money. Managers must: 1. effectively match resources to organization's direction 2. coordinate all activities, 3. evaluate the results.
Conceptual skills.
Managers needs to have a good understanding of the organization and how the organization operates, the organization position in the market, their competitors, and how value to the customer is produced. Managers placed higher in the leadership pyramid need string conceptual skills. Good decision making, as well as accountability for their actions.
Informational: Role of a Disseminator
Managers pass privileged information directly to subordinates, who might otherwise have no access to it.
Decisional: Role of a Negotiator
Managers spend considerable amounts of time in negotiations: over budget allocations, labor and collective bargaining agreements, and other formal dispute resolutions
Strategy aims to:
Maps out a long-term plan. Establishes where an organization hopes to be in three to five years. How the organization will accomplish it how it will know when it has arrived
An organization that has specified quality as part of its vision has set a yearly goal of maintaining 80% error-free production. At the end of year one, the organization achieved only 65%. Which stage of project management is this organization in currently? Establishing timeline Measuring performance Developing strategy Determining objective
Measuring performance. The organization has measured its performance and has fallen short of its 80% error-free production goal by 15%. Measuring performance allows the organization to determine its gap between goals and current performance in order to make improvements.
Which of the following focus on the value an organization creates, and helps to prioritize activities, and provides a framework for decision-making? Vision Values Organization Cultura Mission
Mission The mission statement, along with a series of well-defined, clear objectives, is the strategy to move an organization from its current state toward its vision
A manager continually gathers data regarding the organization's competition and the general business environment. Which management attribute is this individual displaying? Figurehead Monitor Influencer Negotiator
Monitor Managers continually scan the environment for information. This type of fact-finding is specifically mentioned in this scenario.
Informational
Monitor, Disseminator, Presenter Managers are required to gather, collate, analyze, store, and disseminate many kinds of information.
Strategic Goals are:
More expensive Require more resources Typically involves: 1. facility location. 2. technology usage. 3. labor and equipment organization. 4. capacity to meet customer demands.
A business owner began to computerize the organization's operations and has encouraged members of the staff to see the change as an opportunity for professional development. Which leadership attribute is this business owner exhibiting? Focusing on short-term goals Reducing risks Motivating employees Eyeing the horizon
Motivating employees Taking time to encourage one's workers and giving them the freedom to make decisions are leadership attributes of motivation and empowerment.
Decisional
Negotiator, Entrepreneur, crisis handler, and Resource Allocator. Managers are charged with the responsibility of making decisions on behalf of both the organization and its stakeholders
Strategic implementation or strategic execution
No more planning it is time for action! Employees should be aware of their assignments, responsibilities, and authority. Management should provide support and additional training and allocate resources to accomplish the goal. Providing the necessary tools. Motivation, Lead employees along the way.
Strategic plans
Normally contains: long-term and short-term strategies
Lesson 6 Summary: 😏> <)) _/|_
Objectives that are specific, measurable, attainable, relevant, and time-bound help determine the optimal tactical approach for completing tasks and reaching goals. * Using the SMART acronym verifies that objectives are unambiguous and interpreted by everyone in precisely the same way. * Objectives enable managers to develop tactical plans and help determine the standards for performance, or key performance indicators (KPIs). * These standards, or KPIs, will be used to measure how well the objectives were fulfilled.
Differentiated product,
One that is not like any other product on the market
Manufacturing Overhead Budget
Overhead refers to all costs involved in making the product or providing a service except those classified as direct materials or direct labor. Some service organizations have direct labor but not direct materials. Manufacturing overhead costs are manufacturing cots that must be incurred, but that cannot or will not be traced directly to specific units produced.
A professional is asked to make sure that the ideas and goals of the company become reality rather than words on paper. Which managerial attribute should be used to accomplish this task? Overseeing processes Focusing on relationship Creating vision and mission Setting direction
Overseeing processes This is a managerial attribute that involves the direct implementation of a specific organizational plan.
Cash Budgets
Preparing a cash budget requires information about cash receipts and cash disbursements from all the other operating budget schedules.
Interpersonal: Role of a Figurehead
These are the ceremonial duty attached with the job or responsibility of being a manager.
Cash Budgets companies need cash to:
Pay for purchases, wages, rent, interest, income taxes, cash dividends, and most other expenses.
Lesson 10 Summary: 😏> <)) _/|_
Preplanning is necessary for any new initiative. Kamal estimated the financial feasibility of the initiative using a three-step process. He forecasted sales, wrote a budget, and then modified the budget. Thorough job costing and development of a project management plan helps keep everyone on track and engenders stakeholder trust and commitment. * Delivering value is the primary job of a manager who is leading a project and planning for the budget. Value is determined by the customer and then flows back to all stakeholders, shaping all project activities. * Budgeting should be an iterative process in which the estimates become more and more accurate. Project management is a helpful framework to approach the complex priorities of a new initiative and its impacts to an overall budget.
Charlie wants Sure Start to be an early market entrant in the electric car rechargeable battery market since it is new and no one is established as the industry leader. In which operational strategy category is Sure Start focusing its efforts? Maximizing the organization's core competencies Developing a well-integrated company Producing products that focus on the market position Creating a system to measure competitive priorities
Producing products that focus on market position Sure Start is looking to take create valuable market position by being one of the first in the market.
Scope of change
Refers to the degree to which the required change will disrupt current patterns and routines.
A company's new way of doing things is becoming ingrained in the routine of how the company operates on a day-to-day basis. Which stage of Lewin's change model is present in this company? Refreezing Unfreezing Identifying obstacles Beginning change
Refreezing During this last stage in Lewin's change model, the change has been implemented. It is becoming the new status quo. To ensure success, people are rewarded for embracing the change so everyone gets on board.
The school system decided to incorporate tablets in school for every student.
Providing a tablet for all students in their district is a technological change.
Competitive == Offer goods that are cost driven
Providing cost-driven goods means that a company is able to market products at a lower cost than their competitors. A competitive strategy establishes how a company wants to market its products to stand out from competitors.
innate attributes
Qualities or features of something
Decentralized organizational benefits
Quick answers autonomy high level of job experience faster problem resolution
Michael Porter: Differentiation
Refers to a firm's ability to create a good that is difficult to replicate, thereby fulfilling niche needs. Creating a powerful brand image. High cost by increase branding desire.
Market Position
Refers to the customer's perception of a brand or product in relation to its competition.
management's assumptions
Relating to the state of the economy over the planning horizon.
Strategic objectives and analysis
SWOT and PESTLE
A fast food chain restaurant seeks to open three more locations in a geographic territory within a one-year time frame. Which type of goal is being used for this expansion? Long-term Immediate-term Short-term Ultra long-term
Short-term goals are operational issues a firm seeks to address within a one-year period.
A good budget enables companies:
Show management's operating plans for the coming periods. Formalize management's plans in quantitative terms. Force all levels of management to think ahead, anticipate results, and take action to remedy possible poor outcomes. provide authorization for activities resolve conflicts between parties with diverging priorities. Provide a means to evaluate success. Motivate individuals to strive to achieve stated goals.
Strategic evaluation and control == Performance Measurements
Strategic evaluation and control is a crucial stage. Performance measurements (determined by the nature of the goal) will help determine if critical milestones are being met. Reexamining the goals or the measurement criteria to determine success may be necessary
Internal consulting:
Some managers make use of their technical expertise to solve internal problems, acting as inside consultants for organizational change and development.
Technical Skills
Specific areas of knowledge and expertise and the ability to apply that knowledge makes up a manager's technical skills. For example: Creating a computer program, Analyzing data, designing an office building are all examples of Technical skills.
Operational objectives should be SMART:
Specific, Measurable, Attainable, Realistic, Time-bound.
The chief financial officer (CFO), Darris Johnson, is recommending that senior leadership create clearly defined goals for both the short term and the long term. Which short-term goal should be created by the senior leadership? Staffing the Vietnam office with the appropriate headcount Increasing the customer pool by 150% Determining the marketing strategy for the next generation of rechargeable batteries Hiring a replacement general manager for the Asian market.
Staffing the Vietnam office with the appropriate headcount Leadership's focus for the immediate future should be hiring staff for the Asia office.
Bottom-up approach
Starts with the employees. They are surveyed as the main users of a system to gather information on how to implement a change.
Lesson 5 Summary 😏 /||\ _/|_
Strategic goals are generally long term, from three to five years. Tactical plans are generally short term, around a year or less. They are the tools that will be used to complete the objectives. Writing objectives in a SMART format makes it easier to determine whether milestones have been met and allows for the consistent interpretation of their meaning.
A senior manager's work involves both management and leadership roles. The focus is on creating specific, long-term goals for the future direction of the company. Which leadership attribute is being asked of this manager? Influence maker Decision maker Resource allocator Strategic visionary
Strategic visionary. This is a macro-level leadership attribute that focuses on the long-term range
A manager is requested to help whenever there is a breakdown in a firm's production line. Which primary skills does this manager need to apply when such breakdowns occur? Delegation skills Conceptual skills Communication skills Technical skills
Technical Skills. Having knowledge and expertise in a specific area(s) and the ability to apply that knowledge composes a manager's technical skills.
What does a high Least Preferred Coworker(LPC) score suggest?
That a person has a positive orientation toward human relations
What does a low Least Preferred Coworker(LPC) indicate?
That the leader relies more on the nature of the task to drive leadership
Organizational Capacity for Change
The capability of an organization to either effectively prepare for or respond to an unpredictable competitive environment a strategy that focuses on a strategy of exploration in addition to exploiting a market.
Interpersonal: Role of a Leader
The contrast here is that position give potential for power as leadership denotates the manager's actual power.
individualized consideration
The degree to which the leader attends to each follower's concerns and needs and acts as a mentor or coach
Intellectual stimulation:
The degree to which the leader challenges assumptions, takes risks, and solicits followers' ideas
A marketing team sets a goal to increase its product market share by 10%. Which other component of a SMART goal should this team include? Acceptability Specificity Time-bound Measurable
The goal needs a defined deadline for it to be achieved.
Operational Strategy
The methods companies use to reach their objectives
Mission
The mission statement defines the organization's goals, values, and reason for existence
From Mission to Strategy
The mission statement expresses the future-oriented vision in the present. A series of stablished objectives that directs the approach to accomplish the vision.
Project management.
The process of leading the work of a team to achieve goals and meet success criteria within a defined frame, scope, and constraints
Controlling:
The process of monitoring progress and correcting for any veering off the path. Oversee the work of their subordinates. Responsible for the actions of employees under their supervision. Willing and able to: Correct any employee misbehavior Adapt to any changes in the path toward a goal Adapt to changes in the external environment that may influence the completion of the organization's goal.
Return on investment
The profit you receive for investing in something.
performance metric.
The rubric for measuring organizational performance
Interpersonal
The skill necessary to handle human interactions. Managers are required to meet with customer, interact with subordinates, process and gather information.
Stockholders' equity:
The value of property after debt is deducted or the value of shares of stock issued by a company.
How do leaders in an organization exercise power? Through their ability to adhere to best practices By reacting to competitive forces Through their ability to influence others By following a company's bylaws
Their ability to influence others is how leaders exercise power. This is due to the fact that leaders gain power by creating a dynamic in which others want to follow and support their vision. As such, influencing others to want to get on board with that vision requires the ability to influence.
Selling and General Administration (SG&A) —
These costs are support costs, such as the salaries of HR staff, management, legal, accounting, marketing, and other broader corporate expenses that benefit the sale of a particular good.
Communication or Human relations skills
They are interpersonal skills. For example: The ability to understand human behavior, to communicate effectively, to listen to ideas, and motivate individuals. The lack of human skills can lead a manager to use an authoritarian leadership style.
the behavioral theory of leadership.
They evaluated what successful leaders did, developed a taxonomy of actions, and identified broad patterns that indicated different leadership styles
Why is it important that Sure Start managers set SMART goals during this period of growth and uncertainty? It will help ensure that Sure Start will be profitable in the years to come. They will help the company identify strategic plans that are focused, measurable, and well defined to help them through this period of growth. They will help the managers identify goals that are focused, measurable, and well defined to accomplish the vision of the company. It will help reassure the employees in North Carolina that they have a future with the company.
They will help the managers identify goals that are focused, measurable, and well defined to accomplish the vision of the company. SMART goals are specific, measurable, achievable, realistic, and time constrained. They are not open-ended goals.
Strategic evaluation and control
This is a CRUCIAL STATE!!! Determines if critical miles stones are being met. If not a corrective measure is taken Reevaluating goals and measures to determines success. If the plan is not working go back to Strategic formulation step 2 Personel shift, including management, may occur.
Strategic implementation == Strategic execution
This is the stage when planning stops and action begins. Employees in the organization should be aware of their assignments, responsibilities, and authority. Management should provide any additional employee training necessary to meet the plan objectives during this stage, as well as allocate any necessary additional resources.
A significant change in a company's billing process was recently implemented. Which component of change management should be used now? Empower employees Track progress Create a clear strategy Communicate effectively
Track progress Management will want to closely monitor the changes to be sure the intended result is being achieved. This involves talking with employees and determining if small changes are needed to improve efficiency and customer satisfaction.
What is the function of operations management in achieving strategic goals? Describing long-term business goals Transforming resources into profits Focusing on broad company outcomes Defining goals to support the mission
Transforming resources into profits Operations management is focused on producing goods and services from inputs to create profits. Operations management is critical to implementing the day-to-day responsibilities associated with achieving strategic goals.
An urgent care center has changed from being open eight hours on the weekend to 24-hour coverage. The care center is struggling to find employees to cover the additional shifts. Which step should leadership take at this point to overcome this type of barrier in the change process? Revise tactics to meet strategic objectives Engage a human resource consultant Hire staff willing to adapt to the schedule Understand the root cause of resistance
Understand the root cause of resistance Employee resistance should not be ignored as it can undermine the change effort, even if only a small number of staff are resistant. Before taking any action, the root cause of the resistance should be understood to determine the best actions.
A senior leader is considering a significant change in the products offered by the company. What are this leader's primary responsibilities, as opposed to a manager's responsibilities, in making this change? Identifying staffing requirements needed for the new products. Developing operational strategies to support the new products. Updating and communicating the company's mission and vision regarding the new products. Creating a marketing strategy for the new products.
Updating and communicating the company's mission and vision regarding the new products. Senior leaders establish a company's overall mission and vision and communicate this to the organization so that operational strategies, staffing, and marketing can be effective.
A soft drink company upgrades its conveyor system.
Upgrading new or existing machinery is a technological change for the organization.
Which attribute is possessed by managers when compared to leaders? They use their authority to gain compliance. They gain power through their sense of influence. They are most productive when they challenge authority. They motivate through intrinsic processes.
Using authority is how managers gain compliance. This comes from the "rights to act" that they are given by the company as well as the position they hold within the corporate hierarchy.
A company owner writes a detailed and clear picture of what the company will look like five years from now. What is this owner defining to the employees? Mission statement Innate attribute Organizational structure Vision statement
Vision statement
Which function is a manager performing when developing the department's annual budget? Controlling Negotiating Planning Organizing
When developing the department's annual budget, the manager is matching resources to the plan developed to achieve the goals of the organization.
To ensure a productivity goal is met, a manager provides new computers and software updates for all employees in the company. Which aspect of a SMART goal is reflected by this manager's action? Operational Strategic Attainable Time-bound
When setting attainable SMART goals, it is important to make sure that the resources needed to accomplish a task are available to the employees.
B. F. Skinner's theory of behavior modification
Which takes into account the effects of reward and punishment on changing behavior.
1. Define the project
Whole Pine Inc. plans to use 30 percent of its production capabilities to allow customers to have increased options when customizing chairs and tables.
characteristics of a Leaders
Work with the group for the group Motivate others to join them. Get others to buy in to their ideas and plans. They explain them well Delegating tasks allows them to be innovative Inspire others to follow them support, encourage, and reward both individual and team achievements
needs assessment
a systematic process to identify needs or gaps in the current process
Great Man Theory
a theory of leadership that explained leadership by examining the traits and characteristics of individuals considered to be historically great leaders
A job cost system
accumulates costs incurred according to the individual jobs. These systems are used when they can identify separate products or when they produce goods to meet a customer's particular needs.
Why should a company do before launching a change initiative?
an organization should carry out a needs assessment to examine the current organizational culture and operations
Raw materials
are the basic materials from which a product is made.
Core competencies
are the skills and areas of knowledge shared across business units that distinguish a firm and provide a competitive advantage over others.
Fixed expenses
are those costs that remain the same no matter how many units are sold. These can include administrative salaries, depreciation, rent, heat, light, insurance, dues, equipment leases and advertising.
LEAN and Six Sigma
are used to find relatively small changes that can generate greater efficiencies in a process.
Net income
called the "bottom line," it is an individual's income after taking taxes and other deductions into account.
Top-down
change is the highest levels of the administration will drive the change. They will map out the process and deliver it to the staff. This method of change is fast and clear, which makes it easy to make a decision.
Core Traits of a leader:
drive leadership motivation honesty and integrity self-confidence cognitive ability knowledge of the business other traits
Inventory
is a complete list of items such as property, goods in stock, and the contents of a building.
Variable cost
is a cost that changes in relation to another variable such as production output. It applies to each item sold on a per-unit basis. This calculation allows the business to see just how much it costs to source, produce, inventory, manage, and distribute organizational products and services. Variable cost can include time, materials, electricity, wear on machines, shipping costs, and selling fees.
Mechanistic
is a hierarchal organizational structure with central authority.
Depreciation
is a reduction in the value of an asset over the passage of time.
Learning organization
is a term given to a company that facilitates the learning of its members and continually transforms itself.
Change management
is an approach to shifting or transitioning individuals, teams, and organizations from their current state to a desired future state.
Strategy
is how an organization plans to meet the goals that support its mission. A well-developed strategic plan should have: Clearly defined goals, Measures, projects.
Assets:
is property owned by an organization or individual.
Transformational change
is something many organizations pursue in their quest for a higher market share or profit margin. Sometimes they get it right and sometimes they do not.
Forecast:
is the act of predicting business activity for a future period of time.
Strategy for an organization
is the creation of a unique and valuable market position
Opportunity cost
is the inability to pursue another alternative that offers a potential gain after making a choice.
A Model that endorses Bottom-up approach
is the model for improvement used by the National Institutes of Health (NIH.gov).
PESTLE
is the same as PEST analysis. To help companies identify the environment they are operating in. POLITICAL ECONOMIC SOCIAL TECHNOLOGICAL LEGAL ENVIRONMENTAL
Strategic goals.
is the same as long-term strategy
Financial accounting
is the subdivision of the organization's accounting department that prepares financial reports for people external to the organization.
Liabilities:
is what is owed by an organization or individual.
Interpersonal: Role of a Liaison
managers establish and maintain contacts outside the vertical chain of command spend as much time with peers and other people outside of their units as they do with their subordinates even less time with superiors.
Managerial accounting (also called Cost accounting)
prepares financial statements and reports for internal use. Internal financial statements are used to supply managers and employees with the necessary information to complete their tasks.
Organizational agility
refers to frequent change. To be agile, organizations must be change-ready in terms of capacity (they have the resources and the willingness to change), processes (they know how to change), commitment (people in the organization agree to change and are ready to make the effort), and culture (despite the changes, the organization manages to remain aligned with its values and mission)
Transformational change
refers to significant shifts in an organizational system that may disrupt some underlying aspect of the organization, its processes, or structures.
Decisional: Role of a Resource allocator
resource allocator involves managers making decisions about who gets what, how much, when, and why.
Tactical plans are:
short-term plans. current operations of various parts of the organization. Typically answers the questions What is to be done? Who is going to do it? How is it to be done? Typically involves: 1. scheduling and resourcing the workforce 2. establishing quality assurance procedures 3. contracting with vendors 4. managing inventory2
An income statement
shows the change in the financial status of an organization over a specified period.
Centralized organizational drawback
slow process, time to respond customer is delayed Slow process to resolution Lack of autonomy and decision making lead employees to dissatisfaction.
projected income statement
summarizes a company's expected revenues and expenses for the budget period, assuming the company follows its plans
Three Effective Management Skills:
technical skills, communication or human relations skills, and conceptual skills.
inspirational motivation:
the degree to which the leader articulates a vision that is appealing and inspiring to followers
idealized influence:
the degree to which the leader provides a role model for high ethical behavior, instills pride, and gains respect and trust
Net Income
the difference between total revenue and total expenses when total revenue is greater
The production budget:
the number of units of products that must be produced based on the sales budge and the requirements of the inventory on hand
Portfolio
well-diversified portfolio of companies will mitigate risk if the market changes significantly
Important Point About Manager success
while managers may be successful in directing and supervising their subordinates, they often succeed or fail because of their ability or inability to lead Effective leadership often calls for the ability to manage, and effective management usually requires leadership.
Cash receipts is a term used to describe money flowing into a business. It may include the following:
§ Cash from cash sales (received in the month of sale) § Cash from debtors who are paying for a past month's credit sale § Sales of capital assets § Short-term bank financing § Accounts receivable financing § Inventory financing § Unsecured financing
Lesson 12 Summary: 😏> <)) _/|_
· A company can use focus groups, surveys, or one-on-one interviews to gather information about the need for change. · There are many different types of organizational changes. Changes in culture are usually the most challenging. · Some organizations may prefer incremental change, and others can implement sweeping or transformational changes in processes. · The impetus for change can be internal or external, from management or employees, intentional or accidental. · Change may be a single step-wise process, or it can be part of a continuous improvement plan.
Successful change management is more likely to occur
· Create a clear strategy. · Communicate effectively. · Empower employees. · Counter-resistance. · Support employees. · Track progress.
Creating
· Creating a new organizational design (the organizing function) or altering the existing design entails changes that may affect a single employee up to the entire organization, depending on the scope of the changes.
Effective
· Effective decision-making, a leadership task, is a necessary skill for both planning and implementing decisions in the change management process.
Change management can be broken into four elements:
· Recognize the changes in the broader business environment. · Develop the necessary adjustments for the company's needs. · Train employees on the appropriate changes. · Win the support of employees.
Categories of change include the following:
· Strategic goals and purpose of the organization. · Structural. · Organizational hierarchy. · Chain of command. · Management systems. · Job structure. · Administrative procedures. · Technological or process-oriented. · People-oriented changes.
Conner's 6 leadership styles
· The anti-change leader · The rational leader · The panacea leader · The bolt-on leader · The integrated leader · The continuous leader:
the model for improvement used by the National Institutes of Health (NIH.gov) goes as follow:
· This model starts by asking what the aims of the proposed change are. By asking questions to precisely define what you are trying to accomplish, alignment can be checked before any further progress is made in the process. · The next step is to define the exact parameters that will indicate that the change has resulted in an improvement over the status quo. What data can be collected to verify an improvement? · Finally, write clear objectives and develop a tactical strategy that defines the changes that can be made and will most likely result in the desired improvement (Stonehouse, 2012).
