Intro to management final

Models

3 types of models: Type's of managers Functions skills

Recruiting Technique Success Rates

51% hired internally, 27% hired externally but were referred from people inside the company

Estimated prevalence of email and meetings

(Microsoft study of 11 professional) 23% of daily tasks involved email. Good chunk of time spent in email. (Luong study) Average of 3 meetings a day, with an average of 53 minutes per meeting (158 minutes total). More meetings mean more exhaustion.

Morgenstern's time management tips

- Assign to-do list tasks to a "home" in your schedule - If not enough time: 1) Delete 2) Delay 3) Diminish 4) Delegate

What is the marshmallow principle?

Build a tower with certain items and sit a marshmallow on the top without falling. It forces collaboration, helps identify hidden assumptions

Methods of control

Bureaucratic (rules) EXAMPLE: Another characteristic of bureaucratically controlled companies is that due to their rule- and policy-driven decision-making, they are highly resistant to change and slow to respond to customers and competitors. Recall from Chapter 2 that even Max Weber, the German philosopher who is largely credited with popularizing bureaucratic ideals in the late nineteenth century, referred to bureaucracy as the "iron cage." He said, "Once fully established, bureaucracy is among those social structures which are the hardest to destroy." Of course, the national government, with hundreds of bureaus, agencies, and departments, is typically the largest bureaucracy in most countries. Under new U.S. Department of Transportation rules for long-haul truckers, drivers can now drive only 70 hours per week, down from 82. And, they must take a 34-hour break over two nights between workweeks. Intended to increase safety by preventing tired truck drivers from getting behind the wheel, the changes are instead increasing driver turnover (ironically, putting less experienced drivers on the road), putting more trucks on the road during rush hour, and forcing drivers to try to sleep when they're not tired and to drive when they are. Manny Hernandez, who has driven trucks for three decades, says the new rules prevent him from getting home to see his family. Wherever he is when the 70-hour limit kicks in, he has to stop for 34 hours over two nights. Says Hernandez, "It can be a nightmare of having to sit for 48 hours, tired, when all you want to do is get home....Who made up these rules?" he asks. "Did they have any experience in the driving truck[s], and traffic and dealing with customers and [the time lost from] your [truck] breakdowns? Sometimes I think they're trying to choke out the trucking industry." Objective (measures) EXAMPLE: Cyberloafing, wasting time online while at work, costs U.S. companies $85 billion a year due to decreased worker productivity, reduced available bandwidth, and damage from viruses and malware. Rather than blocking websites, an agricultural company uses software to divide the Internet into sites that employees can always, sometimes, or never visit. Sites that eat up too much bandwidth (such as YouTube) and those that may cause legal problems for the company (such as pornography) are forbidden. Otherwise, an on-screen warning alerts employees that a site may not be work-related. Employees can browse non-work-related sites for 10 minutes at a time—up to 90 minutes per day. If they exceed this amount, they must explain to their managers why they need more time on such sites. Lead developer Jeremy Glassman says that the software "provided [employees] with a reminder of the acceptable uses for Internet resources while at work and what is expected of them." Normative (values & beliefs) EXAMPLE: JPMorgan Chase realizes that culture has as much to do with control as algorithms, so it has designated more than 300 executives as "cultural ambassadors" who focus on standards. The company published a memo that encouraged employees to flag any compliance concerns and emphasized that poor compliance and scandals damage the bank's reputation and affect everyone, both professionally and financially. The goal of the program is to reshape the beliefs and values of the bank's employees so that compliance and ethical financial stewardship are part of the company culture. Concentrative (shaped by groups) EXAMPLE: An active form of concerted control is used by the teams at The Other Side Movers (TOSM), a moving company run by The Other Side Academy, a nonprofit in Salt Lake City, Utah, that "helps former felons, substance abusers, and others get clean, stay clean, and learn how to live successful, productive lives." Team members at TOSM are to be "200 percent accountable," meaning 100 percent accountable for their own work and—here's the concerted control—100 percent accountable for the work of everyone else on the team. TOSM team members enforce accountability through "pull-ups." When they see a mistake being made, they're expected to stop, "pull up" the person making the mistake by explaining how to correct the mistake, and then inform the crew leader about the mistake. Team members on the receiving end of a pull-up are expected to be open to the feedback by responding, "OK." Finally, after owning up to a mistake, other team members "patch up" with the "pulled-up" team member by expressing their support and respect for them and their efforts. In its first year, TOSM will do $1 million in business and has become the top-ranked moving company in Salt Lake City. Self EXAMPLE: let's assume you need to do a better job of praising and recognizing the good work that your staff does for you. You can use goal setting, self-observation, and self-reward to manage this behavior on your own. For self-observation, write "praise/recognition" on a three-by-five-inch card. Put the card in your pocket. Put a check on the card each time you praise or recognize someone. (Wait until the person has left before you do this.) Keep track for a week. This serves as your baseline or starting point. Simply keeping track will probably increase how often you do this. After a week, assess your baseline or starting point, and then set a specific goal. For instance, if your baseline was twice a day, you might set a specific goal to praise or recognize others' work five times a day. Continue monitoring your performance with your cards. After you've achieved your goal every day for a week, reward yourself (perhaps a movie or lunch with a friend at a new restaurant) for achieving your goal.

Two Types of Cooperative Contracts

1) licensing: receives royalty 2) franchise: adds initial price

Development options

Education Assessment and feedback Work experiences Relationships

4 components of transformational leadership

idealized influence (role model) inspirational motivation (meaning) intellectual stimulation (questions) individual consideration (listens)

SWOT analysis

identifying internal strengths (S) and weaknesses (W) and also examining external opportunities (O) and threats (T) EXAMPLE: Walmart's distinctive competence, what it does better than competitors, is sell items at low prices. But that's no longer true in groceries, as prices at Aldi grocery stores are consistently 20 percent lower than Walmart's. What core capabilities help Aldi sell at such dramatically lower prices? It focuses on selling a limited number of groceries and household items in a small setting. Aldi stores are just 16 percent the size of a typical Walmart store and carry just 1,500 or so items, compared to 100,000 items in a superstore. Furthermore, most items are private brands—that is, goods that Aldi buys and packages themselves. Hundreds of other small decisions keep costs and prices low. Instead of employees returning carts from parking lots, it charges customers a 25-cent deposit, which is paid inside Aldi stores. Likewise, Aldi charges 4 cents for paper bags and $1.99 for reusable shopping bags. Together, these decisions allow Aldi to run a store with just four to five employees. Aldi is growing strongly at 15 to 20 percent a year.

Variance Analysis

identifying where the deviations are

S.M.A.R.T goals

Specific, Measurable, Attainable, Relevent, Timely

Internalization process

Stage 1: Exporting Stage 2: Cooperative contracts Stage 3: Strategic alliances Stage 4: Wholly owned affiliates

Each stage of the self-management process, including tips and mistakes

Stage 1: Self-assessment and planning Stage 2: Goal Setting Stage 3: Self and environmental control Stage 4: Evaluating and rewarding progress

Firm-level strategies

Strategic Moves in Direct Competition: attacks & responses in the red ocean - Entrepreneurship: movement into deep blue waters EXAMPLE: Apple unveils its Apple Watch with advanced fitness tracking and Fitbit counters with the Blaze, which has a color touchscreen and syncs automatically with your phone. Starbucks Coffee opens a store, and nearby locally run coffeehouses respond by improving service, increasing portions, and holding the line on prices. In the German luxury car industry, BMW, Audi, and Mercedes have an intense three-way rivalry that goes well beyond sales volume to include investments in technology, quality rankings, and profitability. According to one Audi executive, to get approval for a new project, "I just have to say BMW is already doing it, and it goes through." The rivalry is just as heated over at BMW. When it comes to Audi, one BMW executive said, "We like to stick it to them." Attack and respond, respond and attack

Structured and unstructured interviews

Structured: ask exactly the same questions to each candidate, more accurate and easier. Unstructured: open-ended, more of a conversation, less accurate. Semi-structured: Many companies are using a mix of the two to cover ambiguous questions.

environmental scanning

Systematically searching the environment for events or issues that might affect an organization

identify deviations

any difference you find between the actual performance and the excepted performance is a deviation when the actual performance doesn't meet the standard or exceeds the standards

Compare with standard

compare the actual performance with the standard subtract the actual performance from the standard, the variance

Corporate Strategies

growth strategy, stability strategy, retrenchment strategy EXAMPLE: "What business or businesses are we in or should we be in?" IBM CEO Virginia (Ginni) Rometty knows exactly what business her company is in: "When people say, 'What's IBM?' I say, 'it's an enterprise innovation company." Similarly, Dr. Pepper is in the "flavored beverage business."

High and low context cultures

high-context culture - tightly knit; inferences, symbols and gestures instead of words low-context culture - more literal

Forces of Internationalization

modern communication technology, air travel, corporate globalism

Planning

organizational goals and how to achieve them, it encourages people to work harder, work longer and think of better ways to do their job EXAMPLE: "What business are we in?" is at the heart of strategic planning. You'll learn about this in Chapter 6. If you can answer the question "What business are you in?" in two sentences or fewer, chances are you have a very clear plan for your business. But getting a clear plan is not so easy. As the manufacturer of backpacks for industry-leading brands like JanSport, North Face, Timberland, and Eastpak, VF Corporation dominates the $2.7 billion backpack business. The increasing digitalization of textbooks and other documents has led VF to reassess how customers use its backpacks. According to JanSport director of research and design Eric Rothenhaus, "We realized we needed to forget everything we knew about the category.... We started to ask: What are the things we carry with us? How do we carry them? And how is that changing?" VF studied college students, homeless people, and extreme mountaineers, learning that they had surprisingly similar requirements: water resistance, flexibility, storage for electronics, and the ability to pack and unpack several times a day. So rather than making bags to carry things from point A to point B, VR's JanSport backpacks are designed for people who move and work in multiple locations—classrooms, coffee shops, shared office spaces, and beyond. "When you need to be on the go," Rosenhaus said, "you need a backpack

Types and outcomes of influence

resistance - don't do it and don't like it compliance - do it even though they don't like it acceptance - will do it and glad they did it

Job Characteristics

skill variety, task identity, task significance, autonomy, feedback

Reinforcement Theory

the theory that behavior is a function of its consequences, that behaviors followed by positive consequences will occur more frequently, and that behaviors followed by negative consequences, or not. followed by positive consequences, will occur less frequently. EXAMPLE: Every holiday season, thousands of Christmas trees are cut down and stolen from private and public property. The city of Lincoln, Nebraska, is fighting back by spraying evergreen trees with fox urine. This urine produces no smell in cold weather but emits a strong, skunk-like smell once the tree is brought into a warm home. Thanks to the noxious smell, along with prominently posted signs warning that the trees have been sprayed, thieves are no longer cutting down Lincoln's evergreen trees.

Services are consumed immediately

typically services are produced and consumed at the same time

creative work environments

workers perceive that creative thoughts and ideas are welcomed and valued Challenging work organizational encouragement supervisory encouragement workgroup encouragement freedom EXAMPLE: GE Healthcare honors teams who have "dared to try new things and learned from failure." The idea is not to reward failure but risk-taking and the sharing of new ideas. GE spokesperson Laura Paredes says that GE Healthcare employees formalized the sharing process through a short event called "Falcon," at which people shared the lessons they learned from failed ideas and efforts. Likewise, failure is also celebrated at X, Alphabet's (Alphabet is Google's new corporate name) research and development lab, which is also called the "moonshot factory." Because of the extreme difficulty of X's projects, from self-driving cars to trying to get fuel from seawater, there is a strong expectation that success will be preceded by multiple failures. So like at GE Healthcare, X encourages risk-taking by celebrating failure. One way that's done is by letting employees put stickers of crumpled paper (signifying that it's time to go back to the proverbial drawing board) on their laptops whenever they abandon ideas or methods that weren't working. Astro Teller, X's Captain of Moonshots, says, "We keep people brave by rewarding teams that kill their projects. We see killing projects as a normal part of doing business because it means we can go faster and take on more promising ideas."

Earliest management idea

○ 5000 BCE ○ Sumerians ○ Controlling ○Written record keeping

People Centered Practices

○ Protection of job security ○ Rigorous hiring security ○ Employee empowerment ○ Compensation linked to performance ○ Reduction of status differences ○ Sharing of Key information

Functional and dysfunctional turnover

- functional- loss of poor-performing employees who voluntarily choose to leave a company EXAMPLE: one study found that simply replacing poor-performing workers with average workers would increase the revenues produced by retail salespeople in an upscale department store by $112,000 per person per year. -dysfunctional- loss of high-performing employees who voluntarily choose to leave a company. EXAMPLE: VoloMetrix, Inc. uses algorithms to identify so-called flight risks—employees who are gearing up to quit. The software examines anonymized data from employee emails and calendars to identify patterns of communication that indicate the employee is spending less time interacting with colleagues and attending only required meetings. The analysis helps the company predict a departure up to a year in advance, which is important, as the median cost of turnover for most jobs is 21 percent of the employee's annual salary.

Characteristics of good training

-Clarify objectives, use them to select methods -Maximize similarity between the training and the job -Convey general principles -Provide variety of examples -Provide practice and feedback -Use questions to guide attention and encourage active thought

Top 3 mistakes managers make

1) insensitive to others: abrasive, intimidating, bullying style 2) cold, aloof, arrogant 3) betray trust

Ethics and ethical behavior

-Ethics: a set of principles that defines what is right and wrong for a person or group -Ethical behavior- behavior that conforms to a society's accepted principles of right and wrong EXAMPLE: Consider this case study, based on a real-life dilemma regarding an experimental antiviral drug called brincidofovir, made by Chimerix. This drug could be an effective treatment for a range of virulent viruses, including Ebola, smallpox, and the adenovirus, which is thought to cause the common cold. The CEO of Chimerix was contacted by the family of Josh Hardy, a seven-year-old boy who underwent a marrow stem cell transplant to treat kidney cancer. While being treated for cancer, Josh contracted a life-threatening respiratory virus that the family hoped could be treated with brincidofovir. Unfortunately, drug companies must often reserve their limited drug supply for clinical trials needed to secure FDA approval and bring drugs to market. After being declined three times for the drug, the family decided to conduct a social media campaign. More than 32,000 tweets using the hashtag #savejosh were posted worldwide. The nonprofit group Kids v Cancer publicized the campaign, and its director made a public statement that it is "profoundly unethical" for Chimerix to not give Josh the drug. The company was lambasted on social media, and according to the FBI, the CEO Kenneth Moch received several credible death threats. As Chimerix's CEO, what would be the ethical thing to do?

Basic departmentalization structures: Benefits and drawbacks

-Functional Departmentalization: organizing work and workers into separate units responsible for particular business functions or areas of expertise. Benefits It allows work to be done by highly qualified specialists It lowers costs by reducing duplication With everyone in the same department having similar work experience or training, communication and coordination are less problematic for departmental managers. Drawbacks Cross department coordination can be difficult As companies grow, functional departmentalization may also lead to slower decision making and product managers and works with narrow experience and expertise -Product Departmentalization: organizing work and workers into separate units responsible for producing particular products or services. Benefits It allows managers and workers to specialize in one area of expertise Makes it easier for top managers to assess the work-unit performance Decision making should be faster because managers and workers are responsible for the entire product line rather than for separate functional departments Drawbacks Duplication Challenge of coordinating across the different product departments -Customer Departmentalization: organizing work and workers into separate units responsible for particular kinds of customers Benefits Focuses the organization on customer needs rather than on products or business functions. allows companies to specialize and adapt their products and services to customer needs and problems. Drawback Duplication Difficult to achieve coordination across different customer departmentalization structures. may lead workers to make decisions that please customers but hurt business. -Geographic Departmentalization: organizing work and workers into separate units responsible for doing business in particular geographic areas Benefits Helps companies respond to the demand of different markets Can reduce costs by locating unique organizational resources closer to customers Drawbacks Duplication Difficult to coordinate departments that are literally thousands of miles from each other and whose managers have very limited contact with each other. -Matrix Departmentalization: A hybrid organizational structure in which two or more forms of departmentalization, most often product and functional, are used together. Benefits Allows companies to manage in an efficient manner large, complex task such as researching, developing, and marketing pharmaceuticals or carrying out complex global business The pool of resources available to carry out large, complex tasks. Drawbacks high level of coordination required to manage the complexity for involved in running large, ongoing projects at various levels of completion Disagreements or misunderstandings about schedules, budgets, available resources, and the availability of employees with particular functional expertise.

Process gains/losses

-Gains: Info exchange/ load balancing/ social facilitation -losses: Group maintenance/ social loafing/ production blocking

Latham and Baldes study (what did it show?)

-There was drastic increase in performance after a goal was set -Performance was sustained seven years after the goal was first set

Managers as Teachers

-explain basic concepts (TELL) -demonstrate performance (SHOW) -solicit practice (WATCH) -provide constructive feedback (ENCOURAGE) -repeat as necessary

Training Objectives and Methods

-impart information and knowledge- Films and videos -develop analytical and problem-solving skills- case studies -practice, learn or change job behaviors- on the job training EXAMPLE: Uber drivers in Brazil, Colombia, and Mexico can practice their English skills using Duolingo, a foreign language app that delivers micro-instruction through audio, video, text, and pictures. After demonstrating proficiency by advancing to a certain level in the app, a driver's vehicle is listed as an option for English-speaking passengers looking for a driver who speaks their language.

6 steps in ethical decision making model

1) Identify the problem. What makes it an ethical problem? 2) Identify who has been hurt and who could be helped? 3) Diagnose the situation 4) Analyze your options. 5) Make your choice 6) Act EXAMPLES: At Intuitive Research and Technology Corp., an engineering services company in Huntsville, Alabama, Harold "Hal" Brewer, the company's co-founder and president, is the company's ethics champion. Every new employee attends a session called "Let's Talk Ethics with Hal," led by Brewer and the director of human resources, Juanita Phillips. Brewer explains how employees' decisions impact the company, situations they will likely encounter with outside organizations they do business with, and then how to respond. What effect does having the cofounder and president talk to every employee about ethics? Philips says about Hal, "He makes it clear that he is the ethics officer. His strength is that he means every word of it, and he shows it in how he lives every day in terms of running the company. Michael Hoffman, executive director for the Center for Business Ethics at Bentley University, says that having managers teach ethics courses greatly reinforces the seriousness with which employees treat ethics in the workplace.

6 factors of ethical intensity

1) Magnitude of consequences: Who/what will be impacted? The more impacted increases intensity. 2) Social consensus: What will people think of me? If more people will think badly of me, the intensity increases. TOP TWO MOST INFLUENTIAL 3) Probability of effect: What is the chance of the bad or good effect happening? If the chance is small, ethical intensity is small. 4) Temporal immediacy: If they aren't going to catch me for three years, I'll enjoy this until I get caught. People think it might be worth it to live with the benefits for as long as they can before they are caught. 5) Proximity of effect: Will it affect people I know, that is close to me? Physically or socially - increases intensity if affects people close to you. 6) Concentration of effect: how much the average person is actually affected. A large number of people with small effect = not as bad, vice-versa. EXAMPLE: Which of these six factors has the most impact on ethical intensity? Studies indicate that managers are much more likely to view decisions as ethical issues when the magnitude of consequences (total harm) is high and there is a social consensus (agreement) that a behavior or action is bad

Steps in rational decision making

1. Define the problem 2. Identify decision criteria 3. Weigh the criteria 4. Generate alternative courses of action 5. Evaluate each alternative 6. Compute the optimal decision EXAMPLE: your boss comes to you requesting that you define and evaluate the various options for the company's social media strategy; after all, you tweet and use Facebook, Instagram, Snapchat, Reddit, and so on and he doesn't even know how to reboot his computer. Furthermore, your solution has to be optimal. Because budgets and expertise are limited, the company gets one, maybe two tries to make its social media strategy work. If you choose incorrectly, the company's investment will just go to waste, without increasing sales and market share. What would you recommend?

Taylor's four principles

1. Develop a science for each element of a man's work, which replaces the old rule-of-thumb method 2. Scientifically select and then train, teach, and develop the workman, whereas in the past, he chose his own work and trained himself as best he could 3. Heartily cooperate with the men so as to ensure all of the work being done is in accordance with the principles of the science that has been developed 4. There is an almost equal division of the work and the responsibility between the management and the workmen. The management take over all the work for which they are better fitted than the workmen, while in the past, almost all of the work and the greater part of the responsibility were thrown upon the men.

7 (plus 1) traits common to leaders

1. Drive 2. Desire to lead 3. Honesty/integrity 4. Self-confidence 5. Emotional stability 6. Cognitive abilities 7. Knowledge of business 8. Height EXAMPLE: Emirates Airline CEO Tim Clark has been in the airline industry for four decades. Starting with just two planes 32 years ago, Emirates is the world's largest international carrier thanks to its 30+ years of leadership. Emirates's massive industrial dishwashers clean 3.5 million items a day. All the meals it serves are made in its flight kitchens, which bakes 25,000 muffins a day. And, to keep passengers happy, it owns a wine cellar in Burgundy, France for aging 3.75 million bottles of wine.

Components of economic value

1. calculate net operating profit after taxes 2. identify how much capital the company has invested 3. Determine the cost paid for capital 4. multiply capital used in step 2 times the cost of capital step 3 5. Subtract the total cost of capital from net profit after taxes EXAMPLE: Apple had an EVA of $41.9 billion in 2016, by far the largest EVA in the world. The next closest company was Alphabet (parent company of Google) at $10.1 billion. Apple's EVA financial performance in 2016 was extraordinary and the third-largest ever achieved by any company.

Team Productivity Equation

Actual Productivity = Potential Productivity + Process Gains - Process Losses

Terminating Employees

Always make sure it's the last resort and for a good reason. The employee should be aware of the severity and possibility in order for them to have a chance to address the issue. Wrongful discharge: a legal doctrine that requires employers to have a job-related reason to terminate employees. EXAMPLE: When Zynga terminated almost all of the employees from OMGPOP, a startup company it had acquired a year before, one of the employees tweeted, "I learned via Facebook I was laid off today and @omgpop office is closed. Thanks, @zynga for again reminding me how not to operate a business." A computer systems engineer was fired on "Take Your Daughter to Work Day," with his eight-year-old daughter sitting next to him in the human resource manager's office. He and his daughter were both escorted from the building. How would you feel if you had been fired in one of these ways? Though firing is never pleasant (and managers hate firings nearly as much as employees do), managers can do several things to minimize the problems inherent in firing employees.

Experiential and Compression Innovation

An experiential approach to innovation Design iterations EXAMPLE: The longtime use of ultrasound to scan lumber for defects inspired dentist Ken Johnson to develop a prototype technology for scanning teeth. Johnson brought his prototype to businessperson Steve Baird, who formed the S-Ray company to develop and test subsequent prototypes. S-Ray's ClearView Scan combines 3D-modeling software with ultrasound. Besides showing cavities and cracks, the resulting 3D image is used to design perfectly fitting crowns, veneers, braces, and retainers. Dental professor Joerd van der Meer says, "This is the kind of disruptive technology that may really change the dental world." Testing EXAMPLE:While many companies are developing driverless cars, prototype testing has occurred in controlled environments (Google's driverless car always has a driver at the wheel when on public roads—just in case) that often lack the authenticity—and chaos—of daily driving. That changed in 2015 with the opening of M City, a 23-acre mini-metropolis in Ann Arbor, Michigan, with 40 building facades, a bridge, a tunnel, a traffic circle, gravel roads, angled intersections, obstructed views, and even robotic jaywalkers pushing baby carriages. M City allows researchers to test what happens if, say, a red light fails, something they could never do on real city streets. Hideki Hada, an electronics systems manager at Toyota, said, "We would never do any dangerous or risky tests on the open road, so this will be a good place to test some of the next technology." Milestones EXAMPLE: At X, Alphabet's research and development lab known as the "moonshot factory," project milestones must be achieved before receiving additional funding or staff. One of the key milestones is called Foundry because it requires project engineers to develop business plans for their technologies. X also pays team members "failure bonuses" for shutting down projects that won't make it to the Foundry milestone. When a team of 30 engineers shut down a two-year-old project, Astro Teller, X's Captain of Moonshots praised them publicly, saying, "Thank you! By ending their project, this team has done more to speed up innovation at X this month than any other team in this room." Multifunctional teams EXAMPLE: Under the code name "Titan," Apple has a multifunctional project team of 500+ people working to develop the code to control the steering, breaking, safety, and navigation system for self-driving cars. The large project team is composed of software engineers developing apps to link vision sensors to driving systems, regulatory specialists with experience in auto industry rules, and coding specialists hired away from QNX, which develops automotive "infotainment system" software. Powerful leaders EXAMPLE: On average, powerful leaders can get innovation-related projects done nine months faster than leaders with little power or influence.

Tips on communicating with email

Be clear and concise Use subject line effectively Rarely use graphics/attachments Never assume privacy Inform recipient about replying Always include your name and other relevant information Business email should read like a business letter - header/closing/proofed

Centralization and Decentralization

Centralization- the location of most authority at the upper levels of the organization EXAMPLE: Store managers at Whole Foods' 430 locations have long been responsible for deciding what to sell in their own stores. To compete more efficiently against Kroger and Costco, however, Whole Foods has decided to centralize purchasing responsibilities for meat, produce, and many nonperishable items at the company's Austin, Texas, headquarters. Co-CEO John Mackey says of the change, "We want to evolve the structure in such a way that we take out redundancy and waste." Decentralization- the location of a significant amount of authority in the lower levels of the organization EXAMPLE: At Gap, a struggling clothes retailer, CEO Art Peck hopes decentralization produces faster, more effective decisions. Peck first eliminated sign-offs that slowed decisions. So brand merchants acting as fashion collection editors no longer approve every product category. Step two was pushing decision-making authority out to those closest to problems. For example, Gap's foreign suppliers, who make most of the clothes sold in Gap stores, are now authorized to make decisions on items like men's dress shirts.

Components of Specific Environment

Directly affects organizations' day-to-day business and is unique to that industry, consists of trends in: 1) Customers: their behavior and demand 2) Competitors: organizations creating similar products 3) Suppliers: if your company is supplier dependent (company is dependent on supplier) or buyer dependent (vice versa) 4) Industry Regulation: laws specific to the industry 5) Advocacy Groups: groups of concerned citizens (PETA for example)

Characteristics of service provision

Distinctive service characteristics, Customers participate, Services are consumed immediately, Services are provided where and when the customer desires, Services tend to be labor intensive, Services are intangible

Emotional Control Activity

Dr. Seligman; - Signature strengths in a new way, write three good things every day & causes.

Balanced Scorecard

Encourages managers to look at four different perspectives on company performance customer perspective internal perspective innovation and learning perspective financial perspective EXAMPLE shows that the UK-based Barclays Bank uses eight different measures in its balanced scorecard to determine whether it is meeting the standards it has set for itself in the control process. Of those, only one—return on equity—is a standard financial measure of performance. In addition, Barclays measures its financial strength via capital requirements (financial perspective); the ratio of delighted versus dissatisfied customers and wallet share, the percentage of client funds handled by Barclays (customer perspective); employee engagement over time, and the percentage of women in senior leadership positions (internal perspective); and the number of community initiatives that are meeting or exceeding their targets, as well as the bank's reputation measured by the Conduct Reputation Score on the YouGov survey, a reliable and reputable UK pollster (innovation and learning perspective).

EEOC and BFOQ

Equal Employment Opportunity Commission (EEOC) Bona Fide Occupational Qualification (BFOQ) An exception in employment law that permits sex, age, religion, and the like to be used when making employment decisions, but only if they are "reasonably necessary to the normal operation of that particular business" EXAMPLE: The Occupational Safety and Health Act (OSHA) requires that employers provide employees with a workplace that is "free from recognized hazards that are causing or are likely to cause death or serious physical harm." This law is administered by the Occupational Safety and Health Administration (which, like the act, is referred to as OSHA). OSHA sets safety and health standards for employers and conducts inspections to determine whether those standards are being met. Employers who do not meet OSHA standards may be fined. Even though working with wild animals has inherent risks, OSHA found that Sea World did not have adequate procedures in place to protect employees and supervisors properly from killer whales while riding on or swimming with the animals. Building fast-rising pool floors and emergency air systems to protect its trainers did not prevent the death of a trainer at a park in Orlando, so OSHA fined the company $25,770.

Getting funding

Equity- investors give you money that they don't expect to ever be repaid, in exchange they receive ownership of the company Debt- receiving financing from bank, with expectation that you will return the amount in full plus interest. Don't have to give up any ownership rights Awards from competitions- rich benefactor, someone just gives you money

Main point of FastCompany Weil article on Tichy

Every leader tells a story

top manager

Executives are responsible for the overall direction of the organization. Responsible for creating a context for change. Develop employees' commitment to and ownership of the company's performance. Create positive organizational culture through language and action. actively managing internal communication. Responsible for monitoring their business environment EXAMPLE: CEO Doug McMillan explains why Walmart's board of directors hired him, "The company needs to go through quite a bit of change. So don't just run it. Don't just maintain it. Get it prepared for the future. And that future is one in which Walmart's online sales ($13.7 billion in 2016) parallel its sales in its brick-and-mortar stores. McMillon says, "To do that, we need to build a strong and capable e-commerce business—but also to strengthen what we're doing in stores. Customers want to save money and time and have the broadest assortment of items, and we think that by bringing e-commerce and digital capabilities together with the stores, we can do things that a pure e-commerce player can't."

Greenberg study (what did it show?)

Explanation: inadequate, adequate, control (no pay cut) Theft as a reaction to a temporary pay cut across conditions

Three types of control

Feedforward control: happens before you deliver product or service - Monitoring inputs - Anticipating and preventing problems EXAMPLE: Power companies have traditionally relied on consumers to call in power outages. Then, when repair crews arrive, fault detectors displaying a flag or a light can tell them which line is out, but the crews still have to visually inspect miles of power lines, often in weather with poor visibility, to find the precise cause of the outage. Tollgrade, however, is making sensors the size of a loaf of bread, which sit on and are powered by the electricity flowing through the wires, that can notify power companies about problems before they happen (that is, feedforward). With Global Positioning System (GPS) (location) and wireless (communication) capabilities, the sensors monitor the fluctuations in the flow of electricity—from outages to drops to normal transmissions to surge overloads— and instantaneously send text alerts to power company engineers when there are problems. Pennsylvania's Orange & Rockland Utilities were alerted to an electrical line problem over a Fourth of July weekend, and the advanced notice of the outage offered ample time for repair crews to fix the issue before a single customer could complain. Haukur Asgeirsson, technology manager at DTE Energy, says, "You can actually go out there and do some preemptive work before a permanent outage occurs. It looks actually very promising." Concurrent control: happens as you create the product or deliver the service - Monitoring processes - Adjusting ongoing activities EXAMPLE: the year after the failed launch of the Windows 8 operating system, Microsoft began developing Windows 10 by asking corporate partners to comment on the software as it was being developed. An aggressive beta-testing program involved roughly 5 million individuals, 30 percent of whom were information technology workers at large companies. An advisory board of managers from large firms (typically Microsoft's biggest customers) was formed to make recommendations and discuss the company's plans. By asking for feedback concurrently, as development occurred, Microsoft was able to fix bugs earlier and add features recommended by key customers and software developers. Asking so many people for feedback also created a high level of interest in the new operating system. Seventy-three percent of information technology managers indicated that their company planned to adopt Windows 10 within two years of its launch. Feedback control: happens after you create the product or deliver the service - Monitoring products - Learning from past mistakes EXAMPLE: Within minutes of rescuing a snowmobiler stranded in a whiteout, an Alaska Department of Public Safety helicopter crashed, killing all on board. Video footage from a cockpit camera recovered from the rubble revealed that the pilot had incorrectly reset the device that indicates that the craft is flying level. National Transportation Safety Board chief aviation investigator John DeLisi said, "Without that video, we would have been looking at a pile of burned-up wreckage, trying to figure out what caused the erratic flight path that led to this crash." The black box data and voice recorder required on all jets and helicopters could not have provided that information. Because of this video footage, the Alaska Department of Public Safety now requires pilots to receive instrument training every 90 days. This better prepares pilots to navigate in whiteout conditions, which are common in the state. By contrast, the pilot of the crashed helicopter hadn't received instrument training in more than 10 years

Logic of Situational Theories (Fiedler model & Hersey and Blanchard model)

Fiedler's "Contingency" model: leadership states that to maximize workgroup performance, leaders must be matched to the situation that best fits their leadership style. EXAMPLE: A study of 130 restaurants in a pizza franchise examined the interaction between how extroverted store managers were and how involved employees were in trying "to bring about improved procedures [in the store.]" Profits were 16 percent above average in stores with extroverted managers and less involved employees. In those instances, the strengths of the more outgoing boss fit well with the less involved employees. By contrast, profits were 14 percent below average in stores with extroverted leaders and highly involved employees. Why? Because the extroverted leaders were less comfortable with employees who wanted a say in making improvements. Again, leadership success depends on the situation. Hersey and Blanchard's "Situational" model: a theory that says leaders need to adjust their leadership styles to match followers' readiness. EXAMPLE: Have you ever had a new job that you didn't know how to do and your boss was not around to help you learn it? Conversely, have you ever known exactly how to do your job but your boss kept treating you like you didn't?

Competing Values approach

Flexibility and internal: cohesion, human relations Internal and stability: control, administrative Stability and external: productivity, scientific External and flexibility: innovation, systems

Delegation, how to do well

Full responsibility: The manager transfers full responsibility for assignments to the subordinate. Authority: Managers give the subordinate full authority over the budget, resources, and personnel needed to do the job. Accountability: the subordinate now has authority and responsibility to do the job and, in return, is accountable for getting the job done. EXAMPLE: At Apple, when you've been delegated to a certain task, you become the DRI or the "directly responsible individual." As a former Apple employee explains, "Any effective meeting at Apple will have an action list. Next to each action, item will be the DRI," who of course, is responsible for completing that delegated responsibility. Furthermore, when you're trying to figure out whom to contact to get something done in Apple's corporate structure, people simply ask, "Who's the DRI on that?" TripAdvisor's Matthew Mamet says, "When I'm the DRI on a task, it can sometimes come with a bit of apprehension (*Gulp*, not 100% sure how I'm going to do that...but ok I'll figure it out), or maybe with a bit of grumbling (oh man, I guess I gotta do that, too), but being the DRI always comes with a sense of responsibility to the team."

Maximizing benefits of diversity

Get to know one another's backgrounds, Create time/space for questions to clarify meaning, Assume the best intentions

Key ideas behind 'burn your business plan'

Great oral presentation Compelling written story Effective web site Hard-hitting financial projections

Management by Best Seller

Gurus and Best Sellers (see www.thinkers50.com) Peter Drucker — first management guru Michael Porter, Bill Gates, CK Prahalad, Tom Peters, Jack Welch, Jim Collins, Henry Mintzberg, and on and on Potential problems Selective inclusion of anecdotal evidence Can encourage simplistic "do it because I said so" and "one-size fits all" thinking

Components of general environment

Indirectly affects organizations and consists of trends in: 1) Economy: depression, recession 2) Technological: heavily reliant on technology to produce 3) Sociocultural: shift in demographics for example 4) Political/Legal: because we have to abide by them

Norms (How to Set and Maintain)

Informally agreed-upon standards that regulate team behavior. It is important to establish norms because if you make them, it holds team members accountable. Set by: 1) Formal written agreements made early in team formation 2) Team manager's repeated actions 3) Team's responses to critical events

Two general leader behavioral styles from WWII studies

Initiating structure: the degree to which a leader structures the roles of followers by setting goals, giving directions, setting deadlines, and assigning tasks. Consideration: the extent to which a leader is friendly, approachable, and supportive and shows concern. for employees

Individual motivation and job performance equation

Job Performance= Motivation x Ability x Situational Constraints

Culture formation and maintenance

Keys to Successful Organizational Culture: 1) Adaptability: to notice and respond to changes in environment 2) Employee Involvement: higher involvement make employees feel great sense of ownership/responsibility 3) Clear Mission: strategic purpose and direction are apparent to everyone 4) Consistency: consistent with code of conduct throughout MAINTAIN: with organizational stories and heroes

Preparing for an international assignment

Language and cross-cultural training, Consideration of spouse, family, and dual-career issues EXAMPLE: When Atlanta native Joanna Maddox was first in Argentina, she was invited to an Asado, or Argentinian barbecue, scheduled for 8 p.m. Not wanting to be late, she arrived at 7:30 p.m. The catering chef explained that in Argentina, "you never arrive early to an Asado." When Argentinian guests arrived after 9 p.m., Maddox said, "Not a single apology was given for arriving late." And because drinks and appetizers weren't served until 9:30 p.m., Maddox, who usually ate much earlier, said she was so hungry she could, "eat the tablecloth." Dinner was eventually served at 10:30 p.m. Now, however, Maddox has adjusted to Argentina's cultural expectations regarding time. Today, she says, "when I make plans to meet my Argentine friends for coffee or lunch, all I have to do is add an hour to our meeting time and voila, I will be on time."

organizational development interventions

Large Systems Intervention: is to change the character and performance of an organization, business unit, or department. Small Group Intervention: focuses on assessing how a group functions and helping it. work more effectively to accomplish goals. Person-focused Intervention: is intended to increase interpersonal effectiveness by helping people to become aware of their attitude and behavior.

Leadership and management defined

Leadership- the process of influencing others to achieve group or organizational goals Leaders focus on vision, mission, goals, and objectives, while managers focus on productivity and efficiency. Managers see themselves as preservers of the status quo, while leaders see themselves as promoters of change and challengers of the status quo that they encourage creativity and risk-taking EXAMPLE: Even the world's best leaders have doubts. Theo Epstein is president of baseball operations for Major League Baseball's Chicago Cubs, who, after 108 years since their last championship, rallied from three games to one deficit against the Cleveland Indians to win game 7 of the 2016 worlds series in extra innings. In 2017, Fortune magazine named him "the world's best leader." On being told of this honor, he said, "Um, I can't even get my dog to stop peeing in the house. That is ridiculous. The whole thing is patently ridiculous. It's baseball—a pastime involving a lot of chance. If [Ben] Zobrist's ball is three inches farther off the line, I'm on the hot seat for a failed five-year plan. And I'm not even the best leader in our organization; our players are.

line and staff authority

Line- right to command immediate subordinates in the chain of command EXAMPLE: Thomson Reuters CEO James C. Smith has line authority over the president of the company's Financial & Risk Information division. Smith can issue orders to that division president and expect them to be carried out. In turn, the president of the Financial & Risk Information division can issue orders to his subordinates, who run the trading, investors, marketplaces, and governance, risk, and compliance divisions, and expect them to be carried out. Staff- The right to advise but not command others who are not subordinates in the chain of command EXAMPLE: a manager in human resources at Thomson Reuters might advise the manager in charge of the Thomson Reuters Tax & Accounting group on a hiring decision but cannot order him or her to hire a certain applicant.

Job analysis, description, specification

List of duties, responsibilities, and qualifications Developed via job analysis Work-centered (for job description) Worker-centered (for job specifications) Hybrid (most common)

Goals work best when...

Locke & Latham found that goals work best when: 1) Goals are difficult & specific; 2) Person is committed to pursuit; 3) Person has confidence in attainment; 4) Feedback is provided; 5) Task is fairly well learned. A lot of people don't ask questions because they are intimidated.

Hosftede's Cultural Dimensions

Long-term vs. short-term orientation Uncertainty avoidance Masculinity vs. Femininity Individualism vs. collectivism Power distance

Transition to management

Manager's Initial Expectations: be the boss, formal authority, manage tasks, the job is not managing people After Six Months: initial expectations were wrong, fast pace, heavy workload, a job is to be the problem solver and troubleshooter for subordinates After a Year: no longer a doer, communication listening and positive reinforcement learning to adapt to and control stress, the job is people development EXAMPLE: One of the managers Hill interviewed said, "Being the manager means running my own office, using my ideas and thoughts." Another said, "[The office is] my baby. It's my job to make sure it works." In fact, most of the new managers were attracted to management positions because they wanted to be in charge. Surprisingly, the new managers did not believe that their job was to manage people. The only aspects of people management mentioned by the new managers were hiring and firing.

Lewin's Change Model

Managing organizational change is a basic process of unfreezing, change intervention, and refreezing unfreezing- getting the people affected by the change to believe that change is needed changing- workers and managers change their behavior and work practices refreezing- supporting and reinforcing the new changes so that they stick EXAMPLE: When PMA Companies, an insurance risk management firm, was acquired by Old Republic International, an insurance company, PMA's CEO Vince Donnelly communicated frequently with PMA's employees about the merger. Four months before the acquisition became official, he traveled to each of the company's 20 offices and gave employees a detailed description of how their day-to-day operations would change and why the acquisition was good for everyone involved. He also held quarterly updates with employees via videoconference. Said Donnelly, "It's not just one and done. Communication needs to be continual. You need to continue to reinforce the messages that you want people to internalize. So you need to understand that communication is a continuous process and not something that you do just once." He went on to say, "What you are asking people to do is trust you, [trust] that you have the best interest of everybody in mind, and [trust that] when there is news to tell, you're going to hear it directly from the CEO—good, bad, or indifferent."

Needs Theories

Maslow Alderfer's ERG theory- collapses Maslow five needs into three: existence (safety and physiological needs), relatedness (belongingness), and growth (esteem and self-actualization) McClelland's learned needs theory- suggests that people are motivated by the need affiliation (to be liked and accepted), the need for achievement (to accomplish challenging goals), or the need for power (to influence others) EXAMPLE: when the author of the Mr. Everyday Dollar financial strategies website (now ChrisReining.com) learned that he had become a millionaire at 35, he described it as a "huge letdown," saying, "You might think when your account rolls over to seven digits that fireworks light up the sky, confetti falls, and champagne starts flowing. I can tell you that doesn't happen, in fact, it's pretty anticlimactic; I was like, 'Oh, cool,' and then went back to work." In other words, once obtained, his need for financial independence, no longer motivated him as much. When this occurs, people become satisfied, as shown on the right side of Exhibit 13.2.

Maslow theory

Maslow's Hierarchy of Needs suggests that people are motivated by physiological (food and water), safety (physical and economic), belongingness (friendship, love, social interaction), esteem (achievement and recognition), and self-actualization (realizing your full potential) needs.

Mechanistic and organic design

Mechanistic: slow fixed industry (ex. cement) Very clear chain of command Vertical communication Centralized authority Low delegation High specialization Organic: fast dynamic industry (ex. Technology) Think broadly about who you report to Lateral communication Decentralized authority High delegation High generalization When is each most appropriate? Consider two types of innovation

What is a mongrel? Why is it a good thing?

Mongrel- a person who can interact and do business with multiple parties it is a good thing because the mongrel is very useful

Each motivation theory's relevance to managers

Motivating with basics Motivating with equity theory Motivating with Expectancy theory Motivating with reinforcement theory Motivating with goal setting theory Motivating with integrated model

Planning and control tools PERT and GNATT

PERT network- programming/ project, evaluation, and review technique, time management/ control tool is used to represent and analyze the tasks that are involved in completing a specific project 3 tasks: Time, order, what tasks can be done simultaneously TIME ESTIMATED= OPTIMISTIC TIME+ 4MOST LIKELY TIME+ PESIMISTIC TIME / 6 GNATT- a way of representing the scheduling of tasks

Perception process and problems

Perception- the process by which individuals attend to, organize, interpret, and retain information from their environments. Basic Process: Stimulus goes into... 1) Attention; 2) Organization; 3) Interpretation; 4) Retention; ends at Perception EXAMPLE: For instance, imagine that you miss the first 10 minutes of a TV show and turn on your TV to see two people talking to each other in a living room. As they talk, they walk around the room, picking up and putting down various items. Some items, such as a ring, watch, and credit card, appear to be valuable, while others appear to be drug-related, such as a water pipe for smoking marijuana. In fact, this situation was depicted on videotape in a well-known study that manipulated people's perceptual filters. Before watching the video, one-third of the study participants were told that the people were there to rob the apartment. Another third were told that police were on their way to conduct a drug raid and that the people in the apartment were getting rid of incriminating evidence. The remaining third of the participants were told that the people were simply waiting for a friend.

Guidelines for effective interviews

Planning the interview Conducting the Interview After the Interview EXAMPLE: Laszlo Bock, Google's head of human resources, explains why structured interviews are so effective: "...think about the last five people you interviewed for a similar job. Did you give them similar questions or did each person get different questions? Did you cover everything you needed to with each of them, or did you run out of time? Did you hold them to exactly the same standard, or were you tougher on one because you were tired, cranky, and having a bad day? Did you write up detailed notes so that other interviewers could benefit from your insights? A concise hiring rubric [via structured interviews containing the same questions] addresses all these issues because it distills messy, vague, and complicated work situations down to measurable, comparable results." Four kinds of questions are typically asked in structured interviews. Situational questions ask applicants how they would respond in a hypothetical situation ("What would you do if...?"). These questions are more appropriate for hiring new graduates, who are unlikely to have encountered real-work situations because of their limited work experience. Behavioral questions ask applicants what they did in previous jobs that were similar to the job for which they are applying ("In your previous jobs, tell me about..."). These questions are more appropriate for hiring experienced individuals. Background questions ask applicants about their work experience, education, and other qualifications ("Tell me about the training you received at..."). Job-knowledge questions ask applicants to demonstrate their job knowledge (for example, nurses might be asked, "Give me an example of a time when one of your patients had a severe reaction to a medication. How did you handle it?").

Four Functions (model 2)

Planning, organizing, leading, and controlling

Characteristics of an attractive foreign business climate

Purchasing power- measured by comparing the relative cost of a standard set of goods and services in different countries EXAMPLE: a Starbucks' grande latte costs $6.96 in Zürich, Switzerland. Because that same grande latte costs $5.08 in the United States, the average American has more purchasing power than the average Swiss. Purchasing power is growing in countries such as India and China, which have low average levels of income. This is because basic living expenses such as food and shelter are very inexpensive in those countries, so consumers still have money to spend after paying for necessities, especially as salaries increase thanks to demand from international trade Foreign competitors- involves analyzing the degree of global competition, which is determined by the number and quality of companies that already compete in a foreign market

Social Responsive strategies

Reactive- do nothing and deny responsibility EXAMPLE: For nearly two decades, the National Transportation Safety Board (NTSB) has been pressuring the helicopter industry to adopt tougher fuel-tank standards that would reduce the likelihood of fires erupting after a crash. The NTSB estimates that with these upgrades, hundreds of fatalities and serious burns caused by post-impact fires could have been prevented. The industry balked at the expense of the upgrades ($100,000 per helicopter, or $500 million industry-wide). Until that is, a series of high-profile accidents and fatal crashes made it impossible to ignore the issue any longer. Matthew Zuccaro, president of industry trade association Helicopter Association International, acknowledges that attitudes have finally changed. "There is a major cultural shift in the international helicopter community. You got our attention, and we're going to participate," he said. Prompted by two fatal crashes in a three-year period, Air Methods, the largest operator of air ambulances in the United States, has begun the process by retrofitting the fuel systems on 130 of its 400 helicopters. Defensive-admit responsibility but does the least possible to change to EXAMPLE: Defective Takata airbags are responsible for 13 deaths worldwide. Moisture unexpectedly triggers the bags to open, exposing drivers to damaging and sometimes deadly metal shards. Four auto manufacturers, Fiat Chrysler, Mitsubishi, Toyota, and Volkswagen, admit to still making new cars with these defective airbags. Since it takes time for the moisture to build up, the new airbags are considered safe in the short run. All four automakers have until 2018 to replace the defective airbags with functional airbags (which are in short supply because of manufacturing issues). But only Volkswagen and Mitsubishi are telling consumers which cars have defective airbags. Toyota and Fiat Chrysler are not. Karl Brauer, the senior analyst at Kelley Blue Book, an automotive research company, said, "I find it bizarre on multiple levels. Multiple mainstream automakers essentially know that they are selling cars that already have a defective part in them. And it's not a defective windshield wiper or sun visor hinge. It's an airbag, a primary safety device. If a company is unwilling to disclose which models, I as a consumer would hesitate buying any of their cars until I know which ones are affected." Accommodative- do what is expected to solve the problem EXAMPLE: Chipotle once ridiculed rivals for using artificial ingredients and boasted that it served "food with integrity." In 2015, however, the fast-casual restaurant chain was hit with a foodborne illnesses outbreak that crippled the brand's sparkling image. Between July and December 2015, hundreds of customers across nine states contracted E. coli and noroviruses after eating Chipotle food. In response, Chipotle not only closed the stores where outbreaks occurred but also neighboring stores. Managers and employees across the country scoured their stores to sterilize them, and thousands of ingredient samples were submitted to the Centers for Disease Control (CDC) for testing. Ultimately, the CDC could not point to a particular cause or source. Chipotle director of public relations Chris Arnold said, however, "If there's a silver lining in this, it is that by not knowing for sure what the cause is, it's prompted us to look at every ingredient we use to improve our practices." Chipotle's beef supplier now tests meat for pathogens before shipping, and Chipotle has adopted new labeling protocols, such as unique item numbers for all its ingredients, to allow full traceability from the field to food suppliers to restaurants. To ensure that these changes stick, half of all bonuses given to Chipotle managers are now tied to food safety. Proactive-anticipate the problem and go above expectations EXAMPLE: McDonald's CEO Steve Easterman announced that at its 14,350 U.S. stores, it will stop selling menu items made from chickens treated with antibiotics. Scientists and doctors have long warned that treating livestock with antibiotics to prevent infections before they occur is accelerating the development of antibiotic-resistant bacteria. Indeed, 2 million Americans a year develop bacterial infections resistant to antibiotics, and, according to the Centers for Disease Control and Prevention, 23,000 of them will die. McDonald's is making these changes even though it will significantly increase its costs (antibiotic-free chickens are two to three times more expensive to raise). McDonald's size is expected to broadly influence the chicken-growing industry to stop raising chicken with antibiotics. Gail Hansen of the Pew Charitable Trust, an organization critical of the use of antibiotics in meat, said McDonald's new policy, "Will have a ripple effect probably throughout the entire food industry."

Encouraging ethical behavior

Recruit, select, & hire ethical people, Establish a code of ethics, Provide training, Create an ethical climate, Measure and enforce

Quality in service provision (RATER)

Reliability (most important)- delivering a service as promised performing those services right the first time, providing them on time Assurance- when service providers instill confidence in their customers making them feel safe in the transaction, the service provider is confident and courteous Tangibles- what is the physical evidence that this well run operation provides, what are the facilities are they usually appealing, neat clean, are the employees put together, are the materials up to date and maintained Empathy-service providers give the customer individual and personalized attention, they deal with customers in a caring fashion, they have the customers interest at heart Responsiveness- are you promptly responding to customers are you ready, best customer experience

Four Major Schools/Historical Approaches of Management

Scientific- Fredrick W. Taylor use thorough study and testing to identify the best, most efficient way to do a job, Frank and Lillian Gilbreth motion studies to eliminate unnecessary movements in work, Henry L. Gantt refined production control and cost-control techniques Administrative- Max Weber exercising control with knowledge of seven elements bureaucracies, Henri Fayol administrative abilities essential fourteen principles of management Human relations- The Hawthorne studies (1924), studies' results showed for the first time that productivity was strongly affected by worker's attitudes and social relationships, industrial humanism Mary Parker Follett, Elton Mayo, Chester Barnard Systems- What is a system? Parts operating interdependently to achieve a common purpose, Parts affect each other for good (synergy) or bad (undermining). New directions in systems thinking, organizational learning, chaos theory, complex adaptive systems

Shareholder vs. Stakeholder view

Shareholder model - a view of social responsibility that holds that an organization's overriding goal should be profit maximization for the benefit of shareholders Stakeholder model - a theory of corporate responsibility that holds that management's most important responsibility, long-term survival, is achieved by satisfying the interests of multiple corporate stakeholders EXAMPLE: Antibacterial gels, soaps, cleansers, and sanitizers make up a large segment of the $30 billion U.S. cleaning products industry. But according to nonprofit special-interest group the Natural Resources Defense Council, the key ingredient has a number of serious side effects. Triclosan, which weakens bacterial strains, is believed to alter thyroid production, aggravate asthma, decrease muscle function, and, thanks to its pervasive use, actually increase resistance to antibiotics. Kaiser Permanente has banned triclosan and 13 other antimicrobials from its hospitals because, as Environmental-Stewardship Officer Kathy Gerwig says, "We want to use our purchasing power to send a message that it's not OK to use ingredients that might be harmful to our health." Soap manufacturers have begun to take notice of the debate. Henkel (the maker of Dial), Procter & Gamble, Johnson & Johnson, and Colgate Palmolive have all begun eliminating triclosan from some or all of their cleansing products in response to consumer concerns

Goal Setting

Tips- What do I need to do in order to get where I want to go? Set S.M.A.R.T goals Common mistakes: Failing to set goals- "hope and a wish" Setting vague goals- "do your best" Failing to follow through with goals

Ethical Intensity

The degree of concern people have about an issue (how much impact this will have, sometimes we don't understand how much it will impact) EXAMPLE: Managers don't treat all ethical decisions the same. Chimerix's CEO, who has to decide if the company's drug treatment will go to Josh or to another ill (perhaps dying) person who has been waiting for the company's clinical trial to begin, is going to treat that decision much more seriously than the decision of how to deal with an assistant who has been taking paper home for personal use.

Evaluating and Rewarding Progress

Tips: Determine what you've accomplished and reward yourself accordingly. Common Mistakes: Rewarding yourself too early, too late, or too much. Punishing yourself if you fail.

CSR relationship with economic performance

There is generally a small positive relationship between social responsibility and economic performance. EXAMPLE: The market for organic, grass-fed, antibiotic-free beef has grown over 300 percent in the last five years. While it takes longer (20 to 24 months versus 16 to 18 months) for organically raised cattle to make weight, and it costs more (due to the extra time, which raises feed and medical costs, and to the audits and paperwork required to prove the cattle were raised naturally), organic grass-fed beef sells for 30 to 80 percent more per pound. In other words, consumers and restaurants like Chipotle are clearly maximizing a willingness to pay for socially responsible beef.

Active listening with sample clarifying, paraphrasing, and summarizing statements

This means assuming half the responsibility for successful communication by actively giving the speaker non-judgemental feedback that shows you accurately hear what he or she said. Clarifying Could you explain that again? Paraphrasing Responses What you're really saying is... Summarizing responses Let me summarize... EXAMPLE: Two groups of children were asked to accurately identify peoples' emotions in pictures and videotapes. The first group attended a five-day device-free camp (no phones, tablets, or computers), while the second group did not. After the camp, the two groups were tested again. There was little difference in the second group's scores, but the first group improved nearly 40 percent. Why? Students at the camp weren't watching TV or playing video games five hours a day. Aggie Chamlin who attends a no-device camp, said, "I think a cell phone's a virtual wall that you put up for yourself." Yalda Uhls, the lead author of the study and senior researcher with UCLA's Children's Digital Media Center, Los Angeles, commented, "You can't learn nonverbal emotional cues from a screen in the way you can learn it from face-to-face communication." MIT Professor Sherry Turkle, author of Reclaiming Conversation: The Power of Talk in a Digital Age, explained the results this way: "They talked to one another. In conversation, things go best if you pay close attention and learn how to put yourself in someone else's shoes."

Self-assessment and planning

Tips - ask: Who am I now? Whom do I want to be? What are my strengths? What do I want them to be? What am I doing now? What I want to be doing? Where am I now? Where do I want to go? Common Mistakes: Not having any standards Ignoring important parts of our identities

self and environmental control

Tips: What is important? What is urgent? Proactively structure work environment to increase likelihood of success. Common Mistakes: Allowing negative emotions or habits to derail us. Allowing others to control your time.

Type of managers (model 1)

Top managers middle managers first-line managers Team leaders EXAMPLE: Not all managerial jobs are the same. The demands and requirements placed on the CEO of Facebook are significantly different from those placed on the manager of your local chipotle restaurant

4 types of leadership theory, history of leadership theories

Trait Theory (1950's): holds that effective leaders possess similar set of traits or characteristics Behavior styles theory (1950's) Situational theory (1970's) Transformational theorem(1980's)

What to do when employees resist

Unfreeze (Share reasons, Empathize, Communicate) Change (Explain, Champion, Opportunities for feedback, Offer security, Educate, Don't rush) Freeze

Tips for Recruiting

Use social networks of existing employees and friends Use personal contact Target, target, target (what is desired performance? The qualifications? Where will find people who fit?) Targeted online better than broad Carefully proofread all ads

Barling et al. study

When given training employees still were excelling still even after five months. Employees who received no training went down in performance even farther than before they started.

team leaders

a new kind of management job developed by companies shifted to self-managing teams, they have no formal supervisors. They perform all of the functions performed by first-line managers. They facilitate team activities toward accomplishing a goal, they are not responsible for team performance. Team leaders are at the service of the group, the relationship between team meme=bers and other teams are crucial EXAMPLE: Avinoam Nowogrodski, CEO at Clarizen, a software company, says, "Great leaders ask the right questions. They recognize...that a team is much better at figuring out the answers." Team leaders help their team members plan and schedule work, learn to solve problems and work effectively with each other. Management consultant Franklin Jonath says, "The idea is for the team leader to be at the service of the group." It should be clear that the team members on the outcome. The leader is there to bring intellectual, emotional, and spiritual resources to the team. Through his or her actions, the leader should show others how to think about the work they're doing in the context of their lives. It's a tall order, but the best teams have such leaders.

performance report

a report that compares budgeted data to actual data to highlight instances of excellent and unsatisfactory performance

Equity Theory

a theory that states that people will be motivated when they perceive that they are being treated fairly your outcomes/ your inputs = others outcomes/ other inputs EXAMPLE: For example, you learned in Chapter 11 that the CEOs of the largest U.S. firms now make $15.6 million per year, which is 271 times their average employee salary. The 10 highest-paid CEOs averaged earnings of $43.2 million per year, led by Thomas Rutledge, the CEO of Charter Communications, who made $98 million. By contrast, in 2016, CEOs of companies with less than $1 billion a year in revenues averaged $230,090 in earnings or 5.42 times what the average worker makes.

Technology cycles

begins with the birth of new technology and ends when that technology reaches its limits and dies as it is replaced by a newer, substantially better technology EXAMPLE: technology cycles occurred when air conditioners supplanted fans when Henry Ford's Model T replaced horse-drawn carriages when planes replaced trains as a means of cross-country travel, when vaccines that prevented diseases replaced medicines designed to treat them, and when battery-powered wristwatches replaced mechanically powered, stem-wound wristwatches.

cultural differences

beliefs, values, habits, diets, and health practices that differ and are established through social learning and religious upbringing

resistance to change

caused by self-interest, misunderstanding and distrust, and a general intolerance for change EXAMPLE: Production schedules on movie sets have changed dramatically as a result of directors having switched from film to digital recordings. When shooting with film, a new film reel has to be loaded every ten minutes, creating frequent breaks when stars would return to their trailers to read, rehearse, or rest. Because there are no film reels with digital recording, shooting can occur continuously, significantly reducing film production time and costs. A number of famous actors, however, don't like the change. Actor Robert Downey Jr. complained, "I can't work like this. I never get to go to my trailer ... I'm on my feet 14 hours a day. I'm shooting all the time."

Organizing

determining how things get done EXAMPLE: In the retail industry, that usually means matching staffing levels to customer traffic, increasing staffing when busy, and then decreasing staffing when slow. Walmart recently implemented software to match the schedules of its 2.2 million associates with the flows of its 260 million weekly customers. While this dynamic, just-in-time approach sounds like a great idea, it resulted in highly fragmented schedules for thousands of store employees who could be sent home from work after just a few hours (due to unexpectedly slow customer traffic) or called back unexpectedly (when customer traffic increased). These unpredictable work schedules, which effectively put many associates perpetually on call, produced a backlash from employees, advocacy groups, and unions alike. In response, Walmart reconfigured its schedules using three types of shifts: open, fixed, and flex. Managers schedule open shift employees during times that they previously indicated that they would be available for. Fixed shifts, which are offered first to long-time employees, guarantee the same weekly hours for up to a year. Finally, flex shifts let employees build their own schedules in two- to three-week blocks. Walmart is also developing an app that will allow employees to view, update, and set their schedules using a smartphone. Walmart managers have high hopes for the new shift structures, which reduced absenteeism by 11 percent and employee turnover by 14 percent during a two-year test.

appraisal

evaluating employee performance relative to standards objective measures (best) subjective ratings graphic rating scale (worst) BOS, BARS ( better) EXAMPLE: Sixteen percent of companies, including Accenture, Microsoft Adobe, and General Electric (GE), have abolished their performance appraisal systems altogether. GE head of human resources Susan Peters explains the reason for the change this way: "It existed in more or less the same form since I started at the company in 1979, but we think over many years it had become more a ritual than moving the company upwards and forwards."

Customer participate

every customer has different expectations and they influence or alter the type of service being covered

Fairness Theory

expands on equity theory; three perceptions of fairness: 1) distributive: equity theory; 2) procedural: ways to decide; 3) interactive: kindness, respect. RELEVANCE TO MANAGERS: efforts to be fair multi-faceted, helps avoid serious problems.

Defintion of management

getting work done through others... concerned with efficiency and effectiveness in the work process EXAMPLE: To understand how important good management is thinking, Sears one of the oldest retailers in the United States, has lost $10.45 billion since 2011. Recent results are just as bad. Sears lost $1.1 billion in 2015 and closed 562 stores. In 2016, it lost $2.25 billion and closed 200 stores. In 2017, it plans to close another 250 stores. Without the $10.4 billion it raised from selling Lands End clothing, Sears Hometown and Outlet Stores, 327 profitable Sears stores, and its Craftsman tool brand (to Stanley Black & Decker), Sears would be filing for bankruptcy. Robert Futterman, CEO of RKF, a retail leasing and consulting company, said, "Retailers invest in their best stores and refurbish them, they don't sell them."

Leading

inspiring and motivating workers to work hard to achieve organizational goals EXAMPLE: Eileen Martinson, CEO of software developer Sparta Systems, believes that it is important for leaders to clearly communicate what an organization's goals are. She says, "A boss taught me a long time ago that people are going to remember only two to three things." So at her first company-wide meeting, she communicated just one goal—doubling revenues over the next few years. Martinson says, "The employees completely understand where we are going, and we've built a culture around that. If you have to come in and show me 45 charts and go through a lot of mumbo jumbos that neither of us understands, it's not going to work."

Services tend to be intensive

it is hard to mass produce a service since often it is provided to customers one at a time or few at a time, limits on people power, you cannot achieve economies of scale

Controlling

monitoring progress toward goal achievement and taking corrective action when progress isn't being made setting standards to achieve goals EXAMPLE: When traveling, Indians are much more likely to stay with friends or family than in a hotel. In fact, there are just two hotel rooms for every 10,000 people in India (compared to 40 in China and 200 in the United States). Why is this? Analyst Chetan Kapoor says, "There are lots of hotels where customers go in thinking, 'Will there be rats in my room?'" Roughly 60 percent of those rooms are located in independent budget hotels, which vary dramatically in quality. Oyo Rooms is aiming to change that with its new hotel inspection service. Oyo inspects hotels across 200 dimensions, including linen quality, mattress comfort, cleanliness, shower water temperature, and staff appearance. Hotels agree to maintain those standards as a condition of staying in Oyo's 175 city database. Oyo Rooms founder Ritesh Agarwal says that inspections encourage hoteliers to make repairs and upgrade facilities. As a result, he says, "When you book a room through Oyo, you know exactly what you're going to get."

Non-verbal behaviors, effects

non-verbal feedback from managers affects employee behavior in a positive and negative way. Positive with smiles. head nods. and eye contact. while negative like frowns. head shaking. no eye contact. and eye rolling

Errors managers make

not establishing a sense of urgency not creating a powerful enough coalition lacking vision under-communicating the vision not systematically planning not removing obstacles to the new vision declaring victory too soon not anchoring changes EXAMPLE: In 1973, Nordstrom launched Nordstrom Rack, a lower-cost outlet version of its nameplate store. Neiman Marcus Last Call, Filene's Basement, and Saks Off Fifth quickly followed. While Macy's currently accounts for 40 percent of U.S. department store sales, it made a critical mistake by debating what to do about off-price stores for six years before finally opening its own version, Macy's Backstage, in 2015. While the company deliberated, off-price behemoth TJX—the parent company of T.J.Maxx, Marshalls, and Homegoods—shot past it on three key financial metrics. TJX has been more profitable than Macy's since 2008 and has had higher sales revenue since 2014. Since 2005, Macy's market capitalization has shrunk by $5 billion, while TJX's has risen by $35 billion, making it three times larger than Macy's. According to researcher Craig Johnson, "Macy's has been so successful for so long with its core format that it blinded them to the ways that consumer shopping behaviors were changing . . . The fix isn't going to happen overnight."

Services are provided where and when the customer desires

planning and scheduling for service provision more irregular, high demand times

Weber's seven elements

qualification based hiring merit based promotion chain of command division of labor impartial application of rules and procedures, recorded in writing managers separate from owners

Budgets

quantitative plans through which managers decide how to allocate available money to best accomplish company goals EXAMPLE: Campbell Soup, Kellogg, and Mondelez (Oreo cookies) all use zero-based budgeting, as does chicken-processor Pilgrim's Pride, which zealously monitors the amount of paper used to print documents, the soap employees use in washrooms, and the Gatorade workers drink each shift. According to one plant manager, the budgeting process has transformed the culture. When one worker said to him, "Hey, I need a flashlight," he responded, "Do you really need a flashlight?

General Model of HR

recruitment and selection, compensation and rewards, performance appraisal and management, training and development all go into desired performance

Middle manager

responsible for setting objectives consistent with top management's goals and for planning and implementing subunit strategies for achieving. these objectives. Responsible for planning and allocating resources to meet objectives. Coordinate and link groups, departments, and divisions within a company. Monitor and manage the performance of the subunits and individual managers who report to them. Responsible for implementing the changes or strategies generated by top managers. EXAMPLE: Ryan Carson founded the online learning company Treehouse Island without managers because he believed that his 100 employees could make decisions better and faster by themselves. However, that decision was severely tested when rapid growth resulted in 100,000 students enrolled in Treehouse Island's online courses. Employees, unsure of their responsibilities, became increasingly frustrated as endless meetings never seemed to result in meaningful action or decisions. Tasks and projects that were necessary to keep up with demand started to fall behind schedule. Carson fixed the situation by creating roles for middle managers. "That [managerless] experiment broke," said Carson. "I just had to admit it."

first-line managers

responsible for training and supervising the performance of nonmanagerial employees who are. directly responsible for producing the company's products or services EXAMPLE: Consider the typical convenience store manager (e.g., 7-Eleven) who starts the day by driving past competitors' stores to inspect their gasoline prices and then checks the outside of his or her store for anything that might need maintenance, such as burned-out lights or signs, or restockings, such as windshield washer fluid and paper towels. Then comes an inside check, where the manager determines what needs to be done for that day. (Are there enough donuts and coffee for breakfast or enough sandwiches for lunch?) After the day is planned, the manager turns to weekend orders. After accounting for the weather (hot or cold) and the sales trends at the same time last year, the manager makes sure the store will have enough beer, soft drinks, and snack foods on hand. Finally, the manager looks seven to ten days ahead for hiring needs. It can take that long to hire new employees because of strict hiring procedures (basic math tests, drug tests, and background checks). Said one convenience store manager, "I have to continually interview, even if I am fully staffed."

Communication Process

sender, encoding the message, transmit a message, receive a message, decoding the message, a message that understood, receiver EXAMPLE: Jargon, which is vocabulary particular to a profession or group, is another form of noise that interferes with communication in the workplace. Jargon is a common cause of misunderstandings between doctors and patients. Brian Jack, chief of family medicine at Boston Medical Center, says, "We throw papers and throw words at patients. It is crazy to think they would understand." The result, says Dr. David Langer, chief of neurosurgery at Lenox Hill Hospital in New York City, is that patients, "would go home and call back and say they didn't understand, and then ask me the same questions...Doctors often do a terrible job at educating their patients." To combat this problem, Dr. Langer and his colleagues have begun using digital videos to explain CT scans and MRIs, as well as to provide detailed post-visit medical instructions. While preparing for an upcoming surgery, Emily Monato watched the video of her brain MRI several times to better "grasp these big chunks of information." She had her children, father, and friends watch it, too.

Services are intangible

services do not use the 5 senses before they are bought so this creates uncertainty for the customer look for reviews and word of mouth

control processes

set standards measure actual performance compare with standard identify deviations analyze deviations take corrective action

set standards

the cut off that you set that is going to determine what performance is satisfactory versus performance that is unsatisfactory, you need to need to be able to put an actual number on it, it is the goal the business is aiming for, what is the acceptable behavior and results to quantify the acceptable level of performance

Corporate Social Responsibility

the notion that corporations are expected to go above and beyond following the law and making a profit Economic EXAMPLE: company boards are quick these days to fire CEOs. Typically, all it takes is two or three bad quarters in a row. Spirit Airlines is known for its extremely low-cost "Bare Fare" pricing. Spirit customers get cheap prices, but they don't get snacks (not even water), are charged for carry-on luggage (which is free on most other airlines), and sit in crowded, nonreclining seats (more people equals lower prices). Spirit grew steadily, went public, and by September 2015, had revenues of $1.6 billion, up 11 percent over 2014. More impressively, profits rose 43 percent to nearly $243 million during that same period. Competing airlines noticed. Helped by low oil prices, they aggressively slashed fares. In turn, Spirit cut fares 17 percent to stay competitive. Its revenues, profits, and stock price all declined. Three months later, CEO Ben Baldanza was abruptly replaced. William Rollnick, who became acting chairman of Mattel after the company fired its previous CEO, says, "There's zero forgiveness. You screw up and you're dead." According to the Conference Board, 16-29 percent of CEOs of large companies are fired each year. Legal EXAMPLE: Volkswagen clearly violated its legal responsibilities after admitting to using software to falsify emissions tests (turning emissions controls on during testing to meet standards and then turning them off during driving for better mileage). It agreed to pay $22 billion in settlements and fines in the United States, including payments of $5,000 to $10,000 to each owner of a VW diesel car and $4.3 billion in civil and criminal penalties. "Volkswagen deeply regrets the behavior that gave rise to the diesel crisis," the company said in a statement. "The agreements that we have reached with the U.S. government reflect our determination to address misconduct that went against all of the values Volkswagen holds so dear." Discretionary EXAMPLE: When a million-acre wildfire destroyed the town of Fort McMurray in Alberta, Canada, 88,000 citizens were ordered to evacuate from their homes. Twenty-four hundred buildings, including 1,800 homes, were destroyed. Thankfully, no one died. As recovery efforts began, local companies stepped in with donations, contributions, and other forms of valuable assistance. According to Professor Steven Horowitz, "The oil companies provided free food and shelter to over 25,000 people. When the fires cut off easy road access to the small community of Fort McKay First Nation, Brion Energy began trucking in perishable foods daily. Imperial Oil donated 20,000 liters of gasoline to the relief efforts and Shell Albian Aerodrome rounded up evacuees on buses and, along with Suncor's Firebag Aerodrome, evacuated over 7,000 people on company-chartered commercial jets using their private airstrips." Reporter Tristin Hopper says that "Alberta's oil producers effectively turned themselves into multimillion-dollar humanitarian organizations at the drop of a hat." Ethical EXAMPLE: When pepper costs spiked, spice company McCormick & Co. reduced the amount of pepper in its aluminum tins from four ounces to three ounces. McCormick relabeled the product contents on the front label, so consumers were technically informed of the change. Still, consumers could easily have assumed that they were buying four ounces of pepper since the overall design and size of the package didn't change. The food industry calls this strategy—putting less product into the same-sized package—weight-out. Marketing professor and former Federal Trade Commission official Thomas J. Maronick says that legally, "the critical thing is that [McCormick & Co.] told the truth.

span of control

the number of people who report to a manager Wide: More people under a manager Less control (Great autonomy in employees) Fewer salaries More workload on the manager Tall: Few people under a manager More control Higher salaries Less workload on the manager

Expectancy Theory

the theory that people will be motivated to the extent to which they believe that their efforts will lead to good performance, that good performance will be rewarded, and that they will be offered attractive rewards Valence: the attractiveness or desirability of a reward or outcome Expectancy: the perceived relationship between effort and performance Instrumentality: the perceived relationship between performance and reward Motivation = Valence x Expectancy x Instrumentality

chain of command

the vertical line of authority that clarifies who reports to whom throughout the organization EXAMPLE: People higher in the chain of command have the right, if they so choose, to give commands, take action, and make decisions concerning activities occurring anywhere below them in the chain. In the following discussion about delegation and decentralization, you will learn that managers don't always choose to exercise their authority directly.

Logic of Contingency Design

there is no single best design for all companies and situations Burns & Stalker (1961) Most determine the degree of environmental uncertainty and adapt the organization and its subunits to that situation.

Measure actual performance

things that are important can be hard to measure and not everything that can be measured is important

Analyze deviations

we want to understand why it is happening whether we have a positive deviation which means performance was above the standard or a negative deviation which means performance was below the standard, a positive deviation is not always a good thing

Take corrective action

what will you do about any deviations you will find what are you going to do to correct them