exam 3
sensing-intuition
functions or processes of perception
overcoming resistance to change
1. active participation 2. education and communication about the change 3. making only necessary change 4. announcing changes in advance 5. allowing time to adapt to change
awareness of the following six biases can help managers make more enlightened choices
1. being influenced by initial impressions 2. justifying past decisions 3. seeing what you want to see 4. perpetuating the status quo 5. being influenced by emotions 6. overconfidence
sources of managerial mistakes
1. communication barriers 2. justifying past decisions 3. escalated commitment 4. poor conflict management 5. groupthink 6. resistance to change
TQM process
1. define quality standards 2. six sigma (relentless pursuit of quality) 3. reduce cycle time 4. measure quality 5. conduct quality circles 6. keep improving continuously (kaizen) 7. benchmark your competitors
criteria of corporate social performance
1. economic responsibility: 2. Legal responsibility: 3. Ethical responsibility 4. Discretionary responsibility
feedback control model steps
1. establish standards of performance 2. measure actual performance 3. compare performance to standards 4. take corrective action
conflict management modes
1. forcing 2. avoiding 3. compromising 4. accommodating 5. collaborating
7 steps to effective decision making
1. identify the decision 2. gather information 3. identify alternatives 4. weigh the alternatives 5. choose among alternatives 6. take action 7. review your decision
control management goals
1. increase speed measures: time-to-market cycle time 2. reduce costs measures: efficiency (=input/output); productivity (=output/input) 3. improve quality effectiveness (=goal - actual outcome)
unmanaged conflict ... the conflict tornado
1. problem emerges 2. stereotype 3. expand problem area 4. seek external support 5. stop communication 6. polarization/win-lose 7. sense of crisis
why do people resist?
1. self-interest 2. lack of understanding 3. lack of trust 4. uncertainty 5. different priorities/goals
OD activities
1. team building 2. survey feedback 3. large-group interventions
OD steps
1. unfreezing (diagnosis): makes people throughout the organization aware of problems and the need for change; creates motivation for people to change their attitudes and behaviors 2. changing (intervention): when individuals experiment with new behavior and learn new skills to be used in the workplace; implement a specific plan for training managers and employees 3. refreezing (reinforcement): when individuals acquire new attitudes or values and are rewarded for them by the organization; the impact of new behaviors is evaluated and reinforced
control types
1. who (operates control system?) - cybernetic - non-cybernetic 2. when (do you control?) - preliminary - screening - post action 3. how (do you control?) - hierarchical - clan/decentralized
organization development (OD)
A planned, systematic process of change that uses behavioral science techniques to improve an organization's health and effectiveness through its ability to cope with environmental changes, improve internal relationships, and increase learning and problem-solving capabilities. focuses on the human and social aspects of the organization and works to change attitudes and relationships among employees, helping to strengthen the organization's capacity for adaption and renewal can help managers address at least three types of current problems: 1. mergers/acquisitions 2. organizational decline/revitalization 3. conflict management
stakeholder
Any group or person within or outside the organization that has some type of investment or interest in the organization's performance and is affected by the organization's actions
ethical leadership
Managers are honest and trustworthy, fair in their dealings with employees and customers, and behave ethically in both their personal and professional lives. managers and first-line supervisors are important role models for ethical behavior, and they strongly influence the ethical climate in the organization by adhering to high ethical standards in their own behavior and decisions
kaizen
The process of continuous improvement
groupthink
The tendency of people in groups to suppress contrary opinions the desire for harmony outweighs concerns over decision quality group members emphasize maintaining unity rather than realistically challenging problems and alternatives
avoid groupthink
a certain amount of disagreement and conflict is much healthier than blind agreement
risk
a decision has clear-cut goals and that good information is available, but the future outcomes associated with each alternative are subject to some chance of loss or failure enough information is available to estimate the probability of a successful outcome versus failure
code of ethics
a formal statement of the company's values regarding ethics and social issues it communicates to employees what the company stands for state the values or behaviors expected and those that will not be tolerated principle-based: designed to affect corporate culture, define the fundamental values and contain general language about company responsibilities, quality of products, and treatment of employees policy based: outline the procedures to be used in specific ethical situations (marketing practices, conflicts of interest, observance of laws, etc.)
judging-perceiving
attitudes toward outside world
certainty
all the information the decision maker needs is fully available managers have information on operating conditions, resource costs, or constraints and each course of action and possible outcome
extraversion-introversion
attitudes or orientations of energy
Total Quality Management (TQM)
based on a decentralized control philosophy; organization-wide effort to infuse quality into every activity in a company through continuous improvement focuses on teamwork, increasing customer satisfaction, and lowering costs collaborate across functions and departments, as well as with customers and suppliers, to identify areas for improvement, no matter how small Quality = "what your customer wants"
thinking
basing conclusions on logical analysis - focus on objectivity analytical cause and effect reasoning find objective standard reasonable appear tough-minded fair: treat all equally
feeling
basing conclusions on personal/social values - focus on understanding/harmony empathetic guided by personal values strive for harmony compassionate appear tender-hearted fair: treat all individually
ethical responsibility
behaviors that are not necessarily codified into law and may not serve the corporation's direct economic interests. organization decision makers should act with equity, fairness, and impartiality, respect the rights of individuals, and provide different treatment of individuals only when relevant to the organization's goals and tasks
styles to handle conflict
compromising (halfway) - moderate amount of both assertiveness and cooperativeness. It is appropriate when the goals on both sides are equally important, when opponents have equal power and both sides want to split the difference, or when people need to arrive at temporary or expedient solutions under time pressure. accommodating (your way) - high degree of cooperativeness, which works best when people realize that they are wrong, when an issue is more important to others than to oneself, when building social credits for use in later discussions, and when maintaining harmony is especially important. collaborating (our way) - high degree of both assertiveness and cooperativeness. The collaborating style enables both parties to win, although it may require substantial bargaining and negotiation. The collaborating style is important when both sets of concerns are too important to be compromised, when insights from different people need to be merged into an overall solution, and when the commitment of both sides is needed for a consensus. avoiding (no way) - reflects neither assertiveness nor cooperativeness. It is appropriate when an issue is trivial, when there is no chance of winning, when a delay to gather more information is needed, or when a disruption would be costly.
engage in rigorous debate
constructive conflict based on divergent points of view can bring a problem into focus, clarify people's ideas, stimulate creative thinking, limit the role of bias, create a broader understanding of issues and alternatives, and improve decision quality
examples of stakeholders influencing the business
customers, regulatory authorities, stockholders, employees, suppliers, governments, special interest groups, partners, human rights organizations, trade unions, creditors, nongovernmental organizations, communities, customers primary stakeholders: investors and shareholders, employees, customers, suppliers
introversion
directing energy toward inner world (ideas and experiences) learn by reflection and study in-depth specific interests private and contained reflect on problems
extraversion
directing energy toward outer world (people or objects) learn by doing or discussing broad interests sociable and expressive talk through problems
task conflict
disagreements among people about the goals to be achieved or the content of the tasks to be performed can be beneficial because it leads to better decision making and problem solving
organizational virtuousness
discretionary responsibility is related to an organization pursues a positive human impact, moral goodness, and unconditional society betterment for its own sake
sustainability
economic developments that generates wealth and meets the needs of current population while preserving the environment for the needs of future generations
long-term effect of crises on company value
effect is positive if CEO is active effect is negative if CEO hides
whistle-blowing
employee disclosure of illegal, immoral, or illegitimate practices encourage and support whistle-blowing to hold organization accountable; view as a benefit to the company and make dedicated efforts to encourage and protect whistle-blowers
brainstorming
face-to-face interactive group to spontaneously suggest as many ideas as possible for solving a problem highly effective for quickly generating a wide range of alternatives drawbacks: people in a group often want to conform to what others are saying
intuition
focusing on perceiving patterns and relationships future possibilities imaginative and creative patterns move quickly trust inspiration
sensing
focusing on what can be perceived by the 5 senses present realities factual and concrete remember specifics proceed carefully trust experience
thinking-feeling
functions or processes of decision making
know when to bail
good managers aren't hesitant to pull the plug on something that isn't working avoid escalating commitment
Use hard evidence
help take emotion out of the decision making process, keep people from relying on faulty assumptions, and prevent managers from seeing what they want to see commitment to make more informed and intelligent decisions based on the best available facts and evidence being alert to potential biases and seeking and examining the evidence with rigor
selective attention
ignoring certain pieces of information
relationship conflict
interpersonal incompatibility that creates tension and personal animosity among people typically associated with negative consequences for team effectiveness
escalation of commitment
investing time or money in a decision despite evidence that it is failing
non-programmed decisions
made in response to situations that are unique, are poorly defined and largely unstructured, and have important consequences for the organization
corporate social responsibility
management's obligation to make choices and take actions that will contribute to the welfare and interests of society, not just the organization from a social responsibility perspective, enlightened organizations view the internal and external environment as a variety of stakeholders
uncertainty
managers know which goals they wish to achieve, but information about alternatives and future events is incomplete factors that may affect a decision, such as price, production costs, volume, or future interest rates, are difficult to analyze and predict managers may have to make assumptions from which to forge the decision, even though it will be wrong if the assumptions are incorrect a good decision might produce a bad outcome
do a postmortem
managers need to reflect and learn from every decision they make learn valuable lessons for how to do things better in the future
inventory control
minimize inventory & serve customers inventory turnover = COGS/cost of average inventory JIT: stockless production
consequences of JIT
minimize lot sizes, high set-up costs, cut inventory costs, screening quality controls requires CIM = computer integrated manufacturing
hierarchical control
monitoring and influencing employee behavior through extensive use of rules, policies, hierarchy of authority, written documentation, reward systems, and other formal mechanisms evident in many Japanese companies consequences: employees follow instructions and do just what they are told, employees feel a sense of indifference toward work, employee absenteeism and turnover is high rules; automation; computerization; standardized selection & training; budgets
ambiguity
most difficult decision situation the goals to be achieved or the problem to be solved is unclear, alternatives are difficult to define, and information about outcomes is unavailable highly ambiguous circumstances can create a wicked decision problem, the most difficult decision situation that managers face
forcing
objective: get your way "I know what's right" pro: + time constraint con: - resentment, - manipulation
compromising
objective: quick resolution to reach agreement "let's both sacrifice a little to reach an agreement" pro: + easy and fast con: - mutual cost, - politics
accomodating
objective: satisfy the other "what can I do to please you?" pro: + low priority con: + relationship, - exploitation
avoiding
objective: sidestep issues "I am neutral" pro: + cool down con: - escalation, - tension
collaborating
objective: solve the problem "this is my perspective, what's yours?" pro: + durability, + relationship, + ownership con: - time
confirmation bias
positive feelings in one area cause ambiguous or neutral traits to be viewed positively
degree of uncertainty risk, or ambiguity
primary difference between programmed and non-programmed decisions
timing of control
process: input (control = preliminary control); transformation (screening control); output (post action control)
stakeholder mapping
provides a systematic way to identify the expectations, needs, importance, and relative power of various stakeholders, which may change over time helps managers identify or prioritize the key stakeholders related to a specific issue or project
discretionary responsibility
purely voluntary and is guided by a company's desire to make social contributions not mandated by economics, law, or ethics. activities include generous philanthropic contributions that offer no payback to the company and are not expected. the highest criterion of social responsibility because it goes beyond societal expectations to contribute to the community's welfare
facilitating change in the environment
recruiting - select people who "fit", select open-minded employees training - change the people, teaching skills, expose to new ideas organization development - change the culture, build capacity to learn, create flexibility
decentralized control/clan control
relies on cultural values, traditions, shared beliefs, and trust to foster compliance with organizational goals empowerment of employees, effective socialization, and training all can contribute to internal standards that provide self-control consequences: employees take initiative and seek responsibility, employees are actively engaged and committed to their work, employee turnover is low traditions; peer-pressure; socialization; role-models; teams; selection; training
anchoring effect
relying too heavily on the first piece of information offered ("the anchor") when making decisions
programmed decision
situations that have occurred often enough to enable decision rules to be developed and applied in the future made in response to recurring organizational problems
JIT inventory control (new pull approach)
start: estimate orders, order/deliver to supplier, supplier delivers to central warehouse, then to store, then to customer, back to estimate orders
traditional inventory control (old: push approach)
start: supplier, then to warehouse, then to store, then to customer
Ethical structures
systems, positions and programs like ethics training ethics committee: group of executives appointed to oversee company ethics; provides rulings on questionable ethical issues chief ethics officer: company executive who oversees all aspects of ethics and legal compliance, including establishing and broadly communicating standards, ethics training, dealing with exceptions of problems, and advising senior managers
economic responsibility
the business institution is, above all, the basic economic unit of society. Its responsibility is to produce the goods and services that society wants and to maximize profits for its owners and shareholders.
Emotional intelligence EQ
the extent to which people... 1. are self aware: have self-confidence, know strengths and weaknesses 2. manage their emotions: are emotionally stable, deal with setbacks constructively 3. are socially aware: have empathy for others (understand), see different points of view 4. manage relationships: listen and communicate well, build good relations and have influence
perceiving
using sensing or intuition processes to be flexible and spontaneous spontaneous flexible casual energized by last-minute pressure
judging
using thinking or feeling processes to be decisive and get closure planned and orderly organized lives systematic try to avoid last-minute stress
legal responsibility
what society deems as important with respect to appropriate corporate behavior. Businesses are expected to fulfill their economic goals within the framework of legal requirements.
conflict management styles graph
y-axis: assertiveness (help myself); importance of the issue; "competing" = forcing x-axis: cooperativeness (help you); importance of the relationship
halo effect
your overall impression [or a person (or product)] influences your feelings and thoughts about specific traits (i.e. a special form of confirmation bias)