Management 1001 Exam 1
Network form
"knowledge workers" are organized to work as individual contributors or be a part of a work cluster that provides expertise (ex: consulting firm) -ecosystems (ex: hollywood) -informal emphasis -fast adaptability weakness: duplication of resources/low accountability, virtual teams require a lot of coordination
Types of team conflict and their effects on team performance
- Interpersonal conflict (2+ people in the same group) --effects on performance: can lead to retaliation, differences in interests can lead to conflict, lack of communication can hinder performance - intergroup conflict (2+ different groups, one viewed as the enemy) -- effects on performance: can exaggerate differences leading to stereotypes; social identity theory (find negative aspects about others to enhance self image) and realistic conflict theory (limited resources = conflict) affective conflict: disagreements due to personal differences cognitive conflict: work-related issues like missing deadlines task conflict: differences about task that can lead to emotional conflict
Types of resources in resource-based view of firm
- Tangible: plant, equipment, real estate, inventory, raw materials, computing systems - Intangible: internal processes, systems, brands, patents, tech, culture, intellectual property - Human: employees (lower level to CEO)
3 components of organizational culture
- artifacts: visual structures, languages and processes; ex: how employees dress - beliefs/values: meanings that members of the org. attach to artifacts (drives what's important; ex: diversity and inclusion) - assumptions: the "why"; was once a behavior that stemmed by a belief held by a group now deeply embedded in the org. INVISIBLE (intrinsic, instinctive, unconscious) ex: how HP's culture changed and they became successful again
What is a strong culture?
- clear goals that serve as guidelines - role clarity because of explicit expectations - employees operate autonomously and with greater consistency benefits: - decisions will be in line w company goals and therefore require less coordination and monitoring - allows a company to run more smoothly - can serve as a moral compass - lower level of turnover with employees - can discourage disagreement and are difficult to change *CULTURE IS MOST INFLUENTIAL FACTOR IN DEFINING CORRECT BEHAVIORS IN ORGANIZATIONS
Mary Follett's Core Ideas (HR)
- common goals reduce conflict - stressed importance of people rather than engineering techniques - empowerment!
Limitations of scientific management theory
- did not appreciate the social context of work and workers' needs - did not acknowledge that individuals are different from one another - regarded workers as uniform, didn't take into account suggestions
What is a "good" strategy? What are the criteria for evaluating a strategy?
- good strategy creates value for the customer -criteria: external fit, internal fit, differentiation, implementable - 3 components of strategy: managing trade-offs, choosing a set of activities, creating fit -should outline what the firm hopes to achieve/the manner in which it seeks to achieve it
Hawthorne Studies
- human relations increased output - groups performed better when they felt important and had a group pride important in shaping ideas concerning how managers should treat workers
Key characteristics of teams
- shared leadership roles - individual/mutual accountability - purpose specific to the team - complex/interdependent tasks - collective work products - encourages open-ended discussions and problem solving Well-designed teams are communities, dedicated to working together to achieve a common goal. They understand the task to which they have been assigned and the roles and responsibilities that each team member has in completing that task.
Relationship between trust and conflict
- task conflict with low trust creates emotional conflict - task conflict with high trust creates task conflict
What are the five different conflict management styles? In what situation is each one of them more effective?
-Avoiding (issue is trivial, delay is useful, helps both sides cool down) -Accommodating (issue more important to other party, important to preserve relationships) -Compromising (goals of both sides equally important or when a temporary solution is needed) -Forcing (faced with crisis or need to enact unpopular decision) -Collaborating (both parties views are to important to abandon; commitment from both sides is needed; ONLY WIN-WIN SCENARIO)
What are the different ways team use to manage/reduce conflict?
-focusing on interests not positions -build norms that encourage constructive debates -increase cohesion -emphasize superordinate identity and goals -train/develop emotion management skills
Basic forms of organizational structure
-functional -divisional -matrix -network* not considered one of the basic forms, but still a form to know
5 desirable job characteristics
-variety -identity -significance -feedback -autonomy
Tuckman's model of team development
1. Forming 2. Storming 3. Norming 4. Performing 5. Adjourning To be a successful group, these should be in order. Skipping steps may mean instability
Types of process losses
1. coordination loss (production blocking) 2. motivational loss (social loafing)
Types of business level strategies
1. cost leadership (lowest price possible; not unique, economies of scale achieved) 2. differentiation (be unique and can ask high price) 3. focus (focus on specific region, group or product)
Strategic management process
1. evaluate current state (mission, goal, plan) 2. situation analysis (analyze internal/external environments to determine what resources, challenges and opportunities are available to achieve vision, mission and objectives 3. Analyze gaps and (re)define mission and goals 4. Identify strategies 5. Implement strategy 6. Monitor progress Hard to keep a strategy pinned down bc environment is constantly changing
Porter's five forces
1. threat of new entrants (ex: new coffee shop is a threat to dunkin) 2. bargaining power of suppliers (ex: power is high when there are few suppliers, like if you needed a rare fruit only found in one country) 3. threat of substitutes (uber vs taxi) 4. bargaining power of consumers (buyer > supplier when purchasing in large volumes) 5. rivalry among existing competitors (ex: low switching cost and not a lot of differentation)
Competitive advantage
A firm achieves a competitive advantage when it creates more economic value than competitors by engaging in a strategy that is difficult or impossible for others to duplicate cost leadership, differentiation, focus note: for this to be sustainable, a firms strategy must adapt to its' changing environments; must also be aligned with internal capabilities
What are the benefits of having an effective mission statement? What are the different levels of goals and plans?
A mission statement defines a firms reason for existence Benefits: -define purpose -build motivation among employees -provide direction and inspiration -serve as a focal point -assist in making trade-offs
Task environment (external)
DIRECT effects the firm constantly; includes competition, suppliers and customers - exerts a greater, more immediate influence over the firm (ex: apple introduces ipad, samsung comes out with the note) - competitors: g/s targeted to specific group of customers -suppliers: provide resources for g/s (firms maintain several sources to reduce reliance) -customers: MOST IMPORTANT; different sets: commercial (ex: staples paper for biz) and retail (ex: buying school supplies)
2 kinds of negotiations
Distributive and Integrative
Humanistic Perspective
Emphasized the importance of understanding human behaviors, needs, and attitudes in the workplace, as well as social interactions and group processes (Barnard and Follett) 3 subfields: -HR Movement: effective control comes from within; not strict control; Hawthorne studies/effect (more output when managers were nice; had group pride) -HR Perspectives: thought about participation but focused on daily tasks; Maslow's hierarchy of needs and theory x (direct, doesn't like work)/ theory y (exercise self-direction and has ambition) -Behavioral Sciences Approach: draws from many areas to develop theories about behavior and interaction in an org. setting; organization development (improve health and effectiveness by the ability to cope w change, improve relations and ability to problem solve)
What can firms/managers do to influence the external environment?
Environment uncertainty can be dealt with by: -systematic data collection -developing models and forecasts -exerting control and influence
What is the central question of administrative management theory?
How do we design an organization as a whole? (not sure, come back to later)
General environment (external)
INDIRECT - technological (ex: mcdonalds needs espresso machine for coffee drinks) - economic (ex: gdp, unemployment, currency issues, inflation and interest) - political (ex: violence or gov't regulations; WI state street example with closed businesses) - legal (ex: regulations, fuel efficiency standards for cars, intellectual property laws) - sociocultural (demographics, race customs and values; ex: boomers getting too old and leaving labor force then spending money on old people stuff; home depot creating hispanic color paint line) - global (ex: popular trends, currency, war) -creates the basis of strategic context where all businesses compete
Which research/practice areas in modern management evolved from management science (quantitative) perspective?
Information technology: big data analytics (analyzing) large complex sets of data to find patterns and correlations) and supply chain management (manages supplier sequences and oversees production from start to end) assist in decision making, awareness and understanding of complex processes
Different components of team effectiveness
MAIN 3: (1) they must produce meaningful results for the organization (2) they must satisfy team members, and (3) they must enhance the ability of team members to work well together in the future -good representation for task at hand (ex: right mix of tech, advertising, etc); technical skills - ability to work well with others, maintain a positive attitude, provide support - have healthy conflict and consensus - open to new ideas and action-oriented -mutual accountability -size varies based on nature of task
Different types of teams by authority structure
Manager-Led: leader has greatest control over members, responsible for managing and monitoring preformance and reporting progress to the rest of the organization -> Vertical Teams: formal chain of command (ex: Target has a CEO, VP...) -> Horizontal Teams: employees from same hierarchical level but different departments of the organization (ex: healthcare; neurosurgeon and psychiatry teams, or marketing vs sales team) Self-Directed Teams: empower workers by giving every team member authority and responsibility for team building and progress; roles assigned to certain people (ex: 3M does this) Collocated Teams: face to face communication (feel more connected when in-person) Geographically Dist. Teams: digital, rely heavily on tech (ex: gmail)
Quantitative Perspective
Math based; worked with linear programming for optimization, statistics for quality management and capital asset models Quantitative techniques: based on numbers to run business (ex: flash passes at great america) 3 Subsets: - Operations Research: mathematical model building to solve biz problems - Operations Management: use MIS to solve manufacturing problems (ex: forecasting/model building) - Information Technology (IT): software to help estimate cost, track production, schedule... etc
What is "efficiency" and "effectiveness" regarding organizational performance?
Organizational performance is driven by efficiency and effectiveness
Main activities in planning and acting sessions
Planning: clarify goals, creat a contract, useful website Activity: each accountable for on-time delivery, monitor progress regularly and give timely feedback
In a conflict, what is position? What is interest? Why focusing on interest (vs. position) is more important in conflict resolution?
Position: the perspective a person takes on an issue Interest: underlying reasons or needs of each party involved in an issue Interest is more important because positions differ because of interests (they are the root of the problem). Interests are the underlying problems, and usually remain hidden which can create conflict (ex: staying past curfew is bad (position), but really they are worried about safety (issue) also more important because they can assume incompatibility or conflicting goals, can be competitive
Strategy
Pursuing a set of unique activities that provide value to customers; making trade-offs about which businesses to pursue, products to produce, and which customers to serve - aligning resources to achieve organizational perspectives ("game plan") The function/aspect of the management process that strategy is most about is competitive advantage?
SWOT analysis
S: Strengths (HR skill, tech, good manufacturing) W: Weaknesses (older equipment, aging workforce, dependence) O: Opportunities and T: Threats (environmental scanning and contingency planning)
Internal environment
Several dimensions that affect things within the firm typical components: -owners: maintain legal control; sole proprietorships make up majority; owning stock -board of directors: individuals selected by shareholders in charge of overseeing the firm and make sure it aligns with shareholders interests' (sarbanes-oxley act: requiring financial reports to help decrease corruption but increased fees) -employees: make product and preform services; temp and full time, corporate and individual store jobs -culture: who and what a company represents; basic assumptions about how a firm should work and the manner in which employees interact w each other (important in creating competitive advantage)
What are team norms and how are they formed?
Team norms are expected team behaviors; team leader should be explicit about the ground rules, roles, and expectations 5 different categories: meeting, working, communication, leadership, and consideration norms they are formed by new team members discussing them and agreeing on a common approach to managing disruptive behaviors
3 main types of skills needed by managers and how emphasis varies across managerial levels
Technical, interpersonal, conceptual Lower-level managers: more technical tasks Middle level: reporting, planning, recruiting - more leadership-focused Top-level: focusing on vision and agenda "managers must have the strategic abilities needed to understand a situation, the social skills to know what to do in that situation, and the behavioral skills to act"
Contingency View
What works in one organizational situation might not work in others; depends on factors like the industry the firm is working in
How does team cohesiveness relate to team performance?
cohesion causes team members to be effective and efficient, but if too high, members may be scared to confront other team members
What is team cohesion? What are the factors that influence team cohesiveness?
degree of attraction people feel toward a team and their motivation to remain members factors that influence this: -member similarity -size of team -frequency of interaction -team success -external competition
Differences in team members; pros and cons of diversity
different demographics, knowledge, capabilities, personalities, values and needs pros: -diverse teams produce more creative and innovative solutions -possess more complementary info and expertise -larger network to draw upon cons: -not the best for speed and efficiency -greater variance in performance -struggle with group identity
Classical Perspective
early study of management 3 sub categories: - scientific management (Taylor): making labor productivity more improved/efficient; individual worker, found that this method ignores needs and can cause conflict w management and employees) - Bureaucracy (Weber): impersonal, rational; chain of command based on skill, universal skills and steps - Administrative Principles: total organization (one superior, division of work, chain of authority, one direction); 5 basic functions (Fayol): planning, organizing, commanding, coordinating, controlling
Impact of organizational culture on organizations and employees
effectiveness (product quality, customer satisfaction, financial metrics) and efficiency (less coordination, less close monitoring, less conflict, job satisfaction, performance, turnover)
What is "efficiency" and "effectiveness" regarding organizational performance?
efficiency: how well resources are used to achieve a goal effectiveness: the appropriateness of the goals chosen and the degree to which they are achieved
Integrative Negotiations
focuses on multiple issues (ex: car price and the financing); expand the pie -seeks alternate solutions to satisfy both parties -same concerns as distributive negotiation -parties make trade-offs
Divisional form of org. structure
groups diverse functions into separate divisions -can be organized around products, geographies, clients -run as a self-contained business w/ own profit and loss -employees feel more loyal to division -allows for greater accountability -best suited for businesses with HIGH LEVELS OF UNCERTAINTY that need a quick response weaknesses: core functions are duplicated which means no economies of scale; competition may arise
What were Weber's characteristics/principles of bureaucracy?
hierarchy, division of labor, formal selection, career orientation, formal rules, not personal an organization based on rational authority would be more efficient and adaptable because continuity is based on the structure not on employees (ex: if someone dies, easy to replace; efficient) success based on competence and technical skills that can be assessed based on specific training and experience
Factors that influence organizational culture
initially influenced by actions, beliefs, and assumptions of the founder. over time, culture becomes imbedded in the org. through reinforcing mechanisms like formal statements, creed, physical space design, coaching/mentoring by senior leaders, and reward systems.
3 generic forms of task interdependence
new product development and understanding customer understanding production process understanding of new tech ???
Matrix
organizations that face multiple pressures use this (ex: a radio host who starts his own cooking show on the same network) - can simultaneously focus on multiple dimensions - best suited for HIGH INTERDEPENDENCE BETWEEN UNITS (ex: FBI) Weakness: complex, may create confusion for managers
Functional form of org. structure
organizes by activities that needs to be formed (ex: r&d, sales) - processes separate from overall organization - career progression dependent on firms success -straightforward supervision -best suited for EFFICIENCY weakness: cannot deal with environmental changes
what is team identity?
shared sense of collective bond and membership to the group
Distributive negotiation
single issue; one person's gain is another's' loss (a piece of the pie) -- 4 characteristics: - distribution of resources (ex: space in a shared room) - focused on winning (ex: high landing price) - notion of limits (ex: i will not go below 20$) -bargaining zone framework (range of settlements where it is better for both parties to agree)
Components of organizational design
size: smaller goes for more functional because it is direct and efficient, as it gets bigger, focuses more on divisions and then matrix nature of leadership: needs to change with growth and maturity to meet demands of market and environment ???
How can managers reduce social loafing?
social loafing: disengaging from team process and failing to contribute to teams' recommendations (not pulling weight) - make individual contributions more noticeable -make the task more interesting -increase team cohesion -create shared goals
Characteristics of good team goals
specific, difficult and shared among team members must align with organizations goal
Key factors that affect org. structure and how they affect them
strategy (low cost needs functional, differentiation needs flexible), core process (high task variety/low analyzability: flexible; low variety high analyzability: functional), HR (people need independent, flexible structure)
what is "subgroup identity", "faultline", and "superordinate identity"?
subgroup identity: small portion of team begins to form their own group (may cause division) faultline: line that divides the group into 2+ subgroups based on attributes like education, authority or geography superordinate identity: individual belief that they belong to the larger group
Value Chain
systematic way of examining all the activities a firm preforms and determining how they interact to form competitive advantage divides a firm into various activities to better understand total costs and potential sources for firm differentiation (ex: mcdonalds working on cost-leadership by providing low cost food) 2 ACTIVITIES: *more on note sheet -primary activities (physical creation of product and sale/transfer to buyers, ex: material handling, logistics, marketing, service) -support activities (provide support necessary for primary activities to occur, ex: infrastructure, HR management, tech development)
3 types of roles in teams
task roles (coordinator, detailer) interpersonal (encourager, harmonizer) boundary spanning (spokesperson, external coordinator) ???
Systems Thinking
the ability to see both the distinct elements of a system or situation and the complex and changing interaction among those elements note: synergy: whole>sum of parts; important to discern circles of casualty
Theory X vs Theory Y
x: employees hate work, must be directed and controlled y: as natural as play, self-control/direction (more positive)