BUSI310 Test 5

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econ viability

Good financial incentive must be in place Even if costs are brought down you still need to have a supporting infastructure New technologies require long term commitment and management time Patents and copyrights can help orgs recoup the costs of their investments Companies can lose money through fakery

feedback control-v-

control that focuses on the use of infromation about previous results to correct deviations from acceptable standard

sender

conveys info that has meaning, encode the meaning

motivate people to change: misunderstanding

- even when mgmt promises an change that will benefit everyone, people may resist bc they dont understand

fundamental budgetary considerations

-Estimate of sales and expected income, actual income. -Each budget for one period -Enterprise's complete normal cycle of activity -Usually handled by CFO- the final budget and budgetary procedures

resistance to control

-comprehensive controls increase the accuracy of perform data -controls change expertise and power structure -can change an orgs social structure -may be seen as an invasion of privacy -people afraid of losing decision making authority

How to overcome resistance to change

-educate and communicate -involve key stakeholders -provide support and resources -offer incentives -use covert tactics -force the change

clan control relies on empowerment and culture because

-employee's jobs have changed -management has changed -employment realtion shop has changed

how to learn and lead the way:

-explore current reality -discover a deeper understanding of current reality -act by testing solutions

managers and employees often lack information bc

-information overload -lack of openness -filtering

key driving forces for innovation

-need or demand for tech -meeting the need must be possible and people must know how to do it -must be able to convert relevant sci knowldge into practice in engineering and econ terms -necesscary funding, labor, time, space, and other resources -entreprenuraial iniative

market controls use economic forces to regulate performance

-price indicates the value of the good or the service -price competition controls productivity and performance

leading change:

-requires a guiding coaliion, -change leaders develop a vision -communicating the change vision -empowering broad based action

tactical behavior is a downside to bureaucratic control

-try to beat the system -reporting false preformance data -people can produce invalid info amount about what has been done and what can be done -falsify predictions about future

richness in mediums list

1 face to face 2 phone 3 electronic mail, written

three stages of budgetary control

1. Establish expectancies-starts with the broad plan for the company and a sales estimate, and ends with the budget approval and publication 2. Perform budgetarty operations- deals with identifying what is being accomplished and comparing results with expectations 3. Take action- respond appropriately

current ratio

current assets to current liab, ratio indicates the extent to which current assets can decline and still be adaquate to pay current liab

For an airline company, frequent reliable departures are a measurable objective for which perspective on balanced scorecard

customer

six sigma

designed to reduce defects in all organizational processes, not just product defects, but anything that may result in customer dissatisfaction, inadequate service, delayed delivery, and high prices due to costs or ineffeciency -the higher the sigma number, the lower the amount of defects

control systems-v

detect and correct signifigant variations or discrepencies in the results of plans and activities.

internal development

developing a new tech within a company can be proprietary and offer competitive advantage, but is expensive

technical innovator

develops new technology and has the skills needed to operate and build tech

coaching

dialogue with a goal of helping someone become more effective and achieve his or her full potential on the job

upward communication-v-

information that flows from lower to higher levels in the org's hierarchy -managers learn what is going on -employees get opportunity to communicate upward -effective upward comm facilitates downward comm

OD interventions: human process

inproving conflict resoulution, team building, and communication

2. moving-v-

institiuting the change

web 3.0

integrate an blend relationship between machiene and human

noise

interference in the communication system

Replacing Starbucks' baristas with automated coffee-making machines would fall under what perspective of balanced scorecard?

internal business processes

product champion

often at risk of his or her position and reputation, promotes the idea throughout the org, searching for support and acceptance

motivate people to change: peer pressure

often work teams resist changes coming from above, espically ifthey are cohesive and have anti mgmt norms

low cost leadership

operates at lower cost than competitors

specialist control-

operators of computer numerical control, CNC machienes must notify enginering specialists of malfunctions. specialist takes corrective action

boundaryless organization-v-

organization in which there are no barriers to information flow -info is available as needed, move quickly and easily -turns walls into membranes of info.

motivate people to change: timing

people often resist a change bc of poor timing

licensing

permits firms to access unique tech for a fee, more economical than deveopment, firm does not own or control the unique tech, it depends on another firm

production budget-v-

physical units, like types and compacities of machienes, quantity to produce and mateirals

open book managment

practice of sharing with employees at all levels of the org vital information previously meant for managments eyes only

transfer price-

price charged by one unit for a good or service provided to another org unit

market controls let supply and demand determine ______ and ___

prices and profits

prospector firms-v-

proactive technology, push innovators, have cultures that are outward looking and opportunistic

accounting audits-v-

procedures used to verify accounting reports and statements

Early on in its history, Southwest Airlines did not assign a seat number. Instead they issued a letter that placed passengers in a boarding queue. Southwest Airlines' method of not assigning passengers a specific seat number would be considered a _____________ innovation.

process

reflection-v-

process by which a person states what he or she believes the other is saying

New Zealand Air offers a family couch seating arrangement. A family couch is a row of three economy class seats that can be adjusted to form a flat flexible space. New Zealand Air's family couch is a ____________ innovation.

product

key technologies

proved effective, but offer strategic advantage bc not everone uses them

force the change

punishment or threat to change

"Boss, we will need to integrate a timer as a new technology into our control system. However, as you know, we don't manufacture timers. If you agree, I will arrange to ______________; that will be the simplest, easiest, and most cost-effective way to acquire this new technology," said Stan Brown, engineering manager.

purchase it

roi/return on investment

ratio of profit to capital used, or rate of return from capital

1. unfreezing

realizing that current practices are inappropriate and new behavior is necessary People must understand the rationale for changing

business model innovation

refers to a change in the way the organization uses existing technologies to deliver its current products in a more productive and profitable manner

Assume the change at one of Bergman's locations works out well, and Harry begins to convert many or all of the company's locations to being automated. What stage of the Three-Stage Change Model would he be exhibiting?

refreezing

"We take pride in our progressive organization," said Ralph Reyes, owner of Sierra Products. "Because our employees are empowered, and because we manage in an empowered world, I am going to implement a change in our incentive system to

reinforce responsiveness and teamwork

research partnerships and joint ventures

research partnership jointly develops a particular new technology. Typically each member contributes a unique set of resources. Joint ventures similar, except the companies aim to establish entirely new companies, but coordination costs can be hi

reactive change-v-

responding to pressure after a problem has arisen

the adaptation of tech has a ___ shaped curve

s

tech in the long run should:

satsify market needs

a product champion

secures sponsorship for new ideas, or an innovative within organization

enviromental scanning-v-

seeks new technologies by reading cutting edge research journals and attending conferences and seminars

downward communicaiton

information that flows from higher levels to lower levels in the orgs hierarchy. (like the game telephone, message loses effectiveness with each layer it is passed down to)

Control systems include these steps: step 1

setting performance standards, which is the level of expected performance for a given goal

purchase technology

simple to implement and cost effective but does not provide competitive advantage

technology trading

some companies are willing to share tech, speeds learning curve and eliminates trial and error, but some info is not directly applicable

motivate people to change: management tactics

sometimes a change that succeeds elsewhere is undertaken in a new location, and problems may arise during the transfer

skunkworkers

special creative units set free from the normal structure for the purpose of innovation

executive champion-v-

status and authority, and financial resources to support and protect product champion

emerging technologies-v-

still under development but signifigantly can alter the rules of competition in the future

3. refreezing-v-

strengthing behaviors that SUPPORT THE CHANGE =Permanently installs behaviors that maintain essential core values like a focus on important business results and values maintained by companies built to last =Locking key values, capabilities, and strategic mission and don't lock in any specific mgmt practice

sustainable advantage

sustaining the lead depends on competitors ability to duplicate the tech and the firm's ability to keep improving quickly enough to outpace competitors, the first mover

technology-v-

systematic application of scientifc knowledge to a new product, process, or service

Control systems include these steps: step 4

taking action to correct problems and reinforce successes: take appropriate action when there are signifigant deviations

written communication-v

texts and email and written documents, they can be revised before they are sent. They keep a permanent record. Message stays the same if relayed. Sender has no control over when it is read and lacks immediate feedback and person may not understand part of the message

stockholders equity-v-

the amount accruing to the corporation owners

liabilities-v-

the amounts that a corporation owes to various creditors

feedforward control-v-

the contorl process used before operations begin, including policies, procedures, and rules designed to ensure that planned activities are carried out properly -Prevent problems before they arise -Formal rules and procedures prescribe peoples actions before they occur -Sometimes emp will be involved in error proofing- workshops that teach them how to identify and correct errors -Controls aimed at preventing such problems include training in appropriate behavior, like how to deal with harassment and enforcing workplace policies

concurrent control-v-

the control process used while plans are bieng carried out, including directing, monitoring, fine tuning activities as they are preformed -like information tech provides powerful concurrent controls, giving managers immediate access to data from the remotest corners of their companies

media richness-v

the degree to which a communication channel conveys information

performance gap-v-

the difference between actual performance and desired performance

motivate people to change: intertia

the old way of doing things is comfy and easy, people dont want something new

reciever

the person for whom the message is intended, they decode the message and attempt to interpret the meaning (may provide feedback)

technology audit-v-

the process of clarifying the key technologies on which the org depends

budgeting-v-

the process of investigating what is bieng done and comparing the results with the corresponding budget data to verify accomplishments or remedy differences (budgetary controlling)

perception-v-

the process of recieving and interpreting information

filtering-v-

the process of withholding, ignoring, or distorting information

organizational development-v-

the systemwide application of behavioural science knowledge to develop, improve, and reinforce the strategies, structures, processes that lead to organizational effectiveness

communication-v-

the transmission of information and meaning from one party to another through the use of shared symbols

strat for control-bureaucratic control

the use of rules, regulations, and authority to guide performance

assets-v-

the values of the various item the corporation owns

A disadvantage of oral communication is that

there is no permeant record of a message

when the words on the slide are too small to be read from the back of the room during a presentation, an error in the _____ stage of comm process has occurred

transmission

At the beginning of the video, Priya ends her presentation by asking her colleagues to imagine "a world where you never have to wait in line for your groceries again!" What stage of the Three-Stage Change Model is Priya exhibiting?

unfreezing

differentiation leadership

unique good or service for customers that sets them apart and customers are willing to pay

cost budget

used for areas or org that incur expense, but no revenues, like support staf

capital budget

used for the cost of fixed assets, like plants and equip bc of their longterm nature

vanity

using measures that make managers and the org look good

offer incentives

when necesscary, mgmt can offer concrete incentives for cooperating with the change

A logical extension of the sociotechnical philosophy of work design is

workforce empowerment

E-mails, memos, letters, reports, and computer files are examples of

written communication

managing in empowered world

1. Put control where operation is 2. Use real time rather than after the fact controls 3. Rebuild assumptions underlying mgmt;s control to build on trust rather than distrust- empowerment, not just obedience 4. Move to control based on peer norms- guidelines of peer influence 5. Rebuild incentive systems to reinforce responsiveness and teamwork- add value to customer and team performance

grapevine-v-

informal communication network

management audits

an evaluation of the effectiveness and efficiency of various systems within an organization

profit and loss statement

an itemized financial statement of the income and expenses of a company's operations

proactive change-v-

anticipating and preparing for an uncertian future

innovation-v-

any new way of working that creates value

control-v-

any process that directs the activities of individuals towards the achievement of company goals

Sociotechnical Systems Theory

approach redesigns tasks in a way that jointly optimizes the social and technical efficiencies of work

OD interventions:Human resource management

attracting good people, setting goals, appraising and rewarding performance

balanced scorecard-v-

control system combining four sets of performance measures, financial, customer satisfaction, business processes, learning and growth

horizontal communication-v-

information shared among people on the same hierarchal level

technology life cycle

1. early progress can be slow as competitors continually experiment with product design. Product innovation is the highest. 2. Once early problems are resolved and more dominant design emerges, improvements come more form process innovations to refine the tech. Process efficiencies and lower cost 3. Upper limits of performance capabilities, development slows as market becomes saturated.

control systems include these steps

1. setting performance standards 2. measuring performance standards 3. comparing performance against the standards and determining deviations 4. taking action to correct problems and reinforce success

innovation will spread quickly if

=Great advantage over predecessor =Compatible with existing systems =Less complex =Tested easily =Observed easily

certain mgmt practices make orgs great

=Strategy that is focused on customers, continually fine tuned based on marketplace changes, clearly communicated to employees =Execution by good people, given decision making authority =Culture- that motivates and empowers people to innovate, rewards people appropriately, and has strong values =Structure-v- makes the org easy to work in and easy to work with, characterized by cooperation and the exchange of info throughout the org.

base tech decisions on relevant criteria, like

=anticipated market reciptiveness =tech feasability =economic viability =anticipated capability development =org suitability

Advantages of electronic media at work

Allows information to be shared rapidly with large numbers of stakeholders Enables routine messages to be delivered with speed and efficiency Reduces time and expenses related to travelling, photocopying, and mailing Encourages more people to participate and share ideas Leaves a permanent record of communication

Control systems include these steps: step 3

Comparing performance with the Standard: manager evaluates the performance, small deviations standard in some aspects and huge in other companies =

managers must lead a change based upon an established sense of urgency

Examine realities and pressures in the marketplace and identify threats and opportunities Manager can talk candidly about org weaknesses relative to competitors making a point to back up statements with data

innovators

First adopters of new products

managing informal communication

If you hear a story, talk to the key people involved and get facts To prevent rumors from starting, you can explain events that are important but have not been explained, dispel uncertianties by providing facts, and establish open communication and trust over time You should neutralize rumors once they have started.

total organizational change

Introducing and sustaining multiple policies, practices, and procedures across multiple units and levels.

signs a company lacks controls:

Lax top managment-v- senior managers do not emphasize need for controls Absence of expectations and policies Lack of agreed upon standards- org members not sure about what needs to be achieved Shoot the messenger management- employees that feel at risk if they reported bad news Lack of periodic reviews- managers do not assess performance on a timely basis Bad information systems- key data not measured in a timely, regular way Lack of ethics in the culture- org members have not internalized a commitment to integrity

Tech Feasibility

Managers need to consider whether technological innovations are feasible. Sometimes restricted by combined forces of physics and economics

Anticipated Market Receptiveness

Many innovations are stimulated by demand for new goods and services In the short run it should be immediate and valuable In the long run it must satisfy market need or needs

disadvantages of electronic media at work

May not be effective for solving some types of complex problems Prevents interpretation of subtle nonverbal cues conveyed by the sender Engenders less trust among users than face to face comm Messages can hurt feelings be insensitive, or be intentionally hurtful Sensitive or private information can be leaked or sent to the wrong recipient For social media -Avoid content that could embarass -Present opinons in a professional manner -Clarify whose opinion is being expressed

strat for control-clan control

control based on the norms, values, shared goals, and trust among group members, based on common values and goals and interpersonal processes

process innovation-v-

a change in the way outputs are produced (more efficient way of doing something

triple bottom line-v-

a company's financial performance, enviromnental impact, and impact on people in a company

agile design-v-

a flexible and interactive deveoment process characterized by collaboration with customers, fast deployment, continuous improvement, and collaborative communication

development project-v

a focused organizational effort to create a new product or process via technological advances

debt to equity ratio

a leverage ratio that indicates the company's ability to meet its long term financial obligations (if ratio is less than 1.5 it is not considered excessive)

principle of exception: comparing performance with the standard

a managerial principle stating that control is enhanced by concentrating on the exceptions to or significant deviations from the expected result or standard.

activity based costing-v-

a method of cost accounting designed to identify streams of activity and then allocate costs across a particular business proceses according to time employees devote to particular activities

virtual office

a mobile office in which people can work anywhere as long as they have the tools to communicate with customers and colleagues

internal audit-v-

a periodic assessment of a company's own planning, organizing, leading, and controlling processes -list desired qualifications and rank them -list undesireable qualifications -inside the company

disruptive innovation-v-

a process by which a product, service or business model takes root initally in simple applications at the bottom of the market and then moves up market, displacing competitors

two way communication-v

a process in which information flows in 2 directions, reciever provides feedback and the sender is receptive to the feedback

one way communication

a process in which information flows only in one direction, from the sender to the reciever, with no feedback loop

balance sheet-v

a report that shoes the financial picture of a company at a given time and itemizes assets, liabilities, and stockholder's equity

web 2.0

a set of internet based applications that encourage user provided content and collaboration

strat for control-market control

control based on the use of pricing mechanisms and economic information to regulate activities within organizations

_____ starts with the assumption that organizations are collections of people performing many different but related activities to satisfy customer needs.

activity based costing

contracted development

allows a firm without internal development capabilities to aquire the technology by contracting it out to other companies, higher costs on monitoring the contractor

force field analysis-v- (moving)

an approach to implementing lewin's unfreeze freeze model that involves identifying the forces that prevent people from changing and those that will drive people towards change

external audit-v

an evaluation conducted by one organization, like CPA firm or another -outside the org

Anticipated Capability Development

Research and dev lead to tech innovations Managers must have the internal capability to execute their technology strategies

bureaucratic control has downsides

Rigid Bureaucratic behavior ==People want to look good on control systems measures, so they only do what is required of them Therefore, innovation slows down. You want to be efficient and creative ==Rigid B behavior occurs when control systems prompt employees to stay out of trouble by sticking strictly to every single outdated rule. Leads to poor customer service. ==Bu control has a - conotaton

world class

being world class requires applying the best and latest knowledge to operate at the highest standards.

_______ control is the use of rules, regulations, and authority to guide performance.

bureaucratic

The _____ budget is used for the cost of fixed assets like plants and equipment.

capital

product innovation-v-

change in the outputs that the organization produces

adapters-v-

comanies that take the current industry structure and its evolution as givens and choose where to compete

base technologies

commonplace in the industry, everyone must have them

defender firms-v-

companies adopt a more circumspective posture towards innovation, tend to operate in stable enviroments

shapers-v-

companies that try to change the structure of industries by creating a future compeititve landscape of their own design

The purpose of using a balanced scorecard is for

companies to make sure their business activities align with strategy

benchmarking-v-

compares the org's practices and technologies with those of other companies

Strategy maps utilize the ______________ viewpoint of management theories.

contingency

_____ detect and correct significant variations, or discrepancies, in the results of plans and activities.

control systems

cash budget-v

do this after everything else is completed, shows recipts and expenditures

"We must improve our ____________ communication," said Massie Jones, department manager. "By the time the CEO's message gets to my workers, the message has been terribly garbled."

downward

educate and communicate

educate people about the nature of the change and the logic

the ____ of the communication channel depends on the situation

effectiveness

motivate people to change: different assessments

employees receive different and less info than mgmt receives

OD interventions: technostructural

enhancing organizational structure and design, employee involvement and work design

learning orgs

excel at solving problems, seeking and finding new approaches, and sharing new knowledge.

learning leader

exchange knowledge freely, commit to their own continuous learning and well as to others and recognize that orgs are human systems.

standard-v-

expected performance for a given goal, a target that establishes a desired performance level, motivates performance, and serves as a benchmark against which actual performance is assessed

innovation either:

exploits existing capabilities or explores new knowledge

oral communication-v-

face to face discussion, telephone conversations, formal presentations, speeches. Immediate and direct. Can read sincerity and oral is more persuasive. Can lead to spontaneous, ill considered statements.

inanity-

failing to consider the ways that standards will effect real world human behavior and company performance

The human tendency to _____ underlies much of the ineffective communication and demonstrates the need for more effective managerial communication practices.

filter

"Yikes! In my meeting with my boss, I can't tell her exactly what just happened! I will have to withhold some of the facts and skew the results a bit," thought Peggy. Peggy is planning to use ____________ when meeting with her manager.

filtering

acquisition of a tech owner

firm gains control and ownership, but purchase can be expensive.

using financial ratios can be limited in scope and lead to mgmt myopia which is:

focusing on shrot term earnings and profits at the expense of longer term strategic obligations

sales budget

forecasts of sales for month, sales area, or product

pacing technologies

have yet to prove their full value, but have the potential to alter rules of competition

OD interventions: strategic

help orgs conduct mergers and acquisitions, change strategies, and develop alliances

analyzer firms-v-

hybrid orgs that need to stay tech competitive but will let others demonstrate solid demand before responding, a early follower strategy

motivate people to change: surprise

if change is sudden, resistance may be inital reaction

tech in the short run should be:

immediate and valuable

innovation and learning perspective of the balanced scorecard focuses on

improvement of knowledge sharing mechanisms

master budget-v-

includes all major activities of business, coordinates all activities of other budgets

liquidity ratio

indicate a company's ability to pay short term debts

profitability ratio

indicates mgmt's ability to generate a financial return on sales or investment

"I am implementing a boundaryless organization—an organization without significant barriers to information flow," said Jill Smart, Chief Information Officer. "This free flow does not imply a random free-for-all of unlimited communication and information overload. Rather, it means

info will be available as needed

___________ is about creating a new product while __________________ is the transformation of an idea into something useful.

invention, innovation

Organization development (OD)

involves an actual process of changing for the better and for the long term

laggards

isolated and conservative

Larry McLeod, Chief Financial Officer, told the CEO, "Paydown of our two largest debts this past year really helps our financial picture. Our investors will appreciate that we no longer have these ___________ on our balance sheet."

liabilities

assets=

liabilities + stockholders equity

provincialism

limiting measures to functional/departmental responsbilities rather than the org's overall objectives

An ineffective way to manage the grapevine within organizations is to

make false denials about gossips

provide support and resources

make the change as easy as possible, facilitation will involve prvoding training and other resources

frivolity

making excuses for poor perfromance rather than taking performance standards seriously

use covert tactics when needed

managers need subtle, covert tactics to implement change

innovators dilemma-v-

many good managers miss transformative shifts bc they are focused on making incremental improvements to their core profitable businesses

pettiness

measuring just one component of what affects business performance

Control systems include these steps: step 2

measuring performance: -written reports-v- include computer printouts and on screen reports. -oral reports-v-allow 2 way communication. like when a sales person contacts supervisor each evening to go over the day -personal observation-v- involves going into the area and watching what occurs

narcissism-

measuring the employee's, managers, or company's viewpoint rather than listening to the customers

late majority-v

members of this group more skeptical of tech change and approach with caution

Early majority-v-

more deliberate, take longer to decide, and are important members of community. Once they adopt, it is in the main stream

informal communication

more unofficial, like gossip

motivate people to change: self-interest

most people will resist a change if they think it will cause them to lose something of value

provide adaquate information by feedback becasue it:

motivates people and provides information that enables them to correct their own deviations from performance standards

Harry grants permission for Priya to start automated sales at one of Bergman's locations. What stage of the Three-Stage Change Model is Harry exhibiting?

moving

operator control-v-

multiskilled operators can rectify their own problems as they occur.

early adoptors

nect group, crucial and well respected opinion leaders. Those to whom others look towards for suggestions

laziness

neglecting to expend the effort to identify what is important to measure

Phone interruptions, thoughts about other things, and fatigue and stress may block perfect understanding between the communicating parties. These are examples of _____ in the communication process.

noise

_____ cues often make a greater impact than other signals; hence managers must remember that their actions often speak louder than their words.

nonverbal

formal communication

official, managmenet sanctioned episodes of information transmission. They can move upward, downward, or horizontally and are often necesscary for preforming a task


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