Management 301 final

Environment, Technology, Strategy, Organizational Culture, Organization size

5 components of organizational structure

Decision

A determination made after consideration

Adverse impact

A disparity resulting from an employment decision in which the criteria used, while not overtly discriminatory, have a discriminatory impact (one of two forms of discrimination)

Occupational Health and Safety Act (OSHA)

A federal law that ensures safe and healthful working conditions by authorizing enforcement of standards provided under the act.

exit interview

A formal conversation with an employee leaving an organization (Purpose of determining why the employee is leaving and seeing how improvements can be made in the future to prevent turnover)

Theory of Constraints (Goldratt)

A method for identifying the the most important limiting factor in achieving a goal. 5 Steps: Locate/Identify, Exploit, Subordinate, Elevate, Rinse/lather/repeat (find next constraint

Boston Consulting Matrix (Growth Share Matrix OR BCG)

A portfolio management matrix framework to help managers prioritize their different businesses by their degree of profitability based on company competitiveness (relative market usage) and market attractiveness (growth rate)

Leadership

A process of social influences that maximizes the efforts of others towards the achievement of the goal

Mission statement:

A short statement that signifies an organization's purpose or reason for being

Vision statement:

A statement of the organization's long term goals and ultimate image

Organizational Structure

A system of institutional rules and policies designed to outline how various work roles and responsibilities are delegated, controlled, and coordinated.

Intrapreneur

An employee of an organization looking to improve business (rather than entre- where someone looks to improve their own business)

decentralized authority

An organization structure in which decision-making authority is delegated to lower-level managers more familiar with local conditions than headquarters management could be.

Matrix structure

An organizational structure combines functional and divisional chains of command in a grid so that there are two command structures-vertical and horizontal (improved communication)

Vertical structure

An organizational structure where managers have increased command/control over their employees (centralized authority)

Horizontal structure

An organizational structure with few or no levels of middle management between staff and executives (decentralized authority)

Porter's 5 Forces

Analysis to determine attractiveness of particular industry *Rivalry among competitors; *Threat of new entrants; *Threat of substitute products; *Bargaining power of buyers; *Bargaining power of suppliers;

speculative activity

Attempting to influence buyer behavior through attractive pricing of commodities, handmade goods, luxury items, etc.

Star

BCG Matrix Category: High market share (cash usage), High growth rate (cash generation). Invest as much as possible

Cow

BCG Matrix category: High market share (cash usage), low growth rate (cash generation). "Milk" to reinvest in Star.

Question Mark

BCG Matrix category: Low market share (Cash usage), high growth rate (cash generation). Determine potential to turn to Star, invest if high potential, discard if not.

Dog

BCG Matrix category: Low market share (cash usage), low growth rate (cash generation). Company should liquidate, devest, etc.

Relationship orientation

Behavior concerned with enhancing relationships as the primary objective. (Employee-centered leadership behavior/consideration behavior)

Task orientation

Behavior related to completing tasks as the primary objective (Job-centered leadership behavior/initiating structure behavior)

Kotter's 8-step model of change

Change Model: Step One: Create Urgency. ... Step Two: Form a Powerful Coalition. ... Step Three: Create a Vision for Change. ... Step Four: Communicate the Vision. ... Step Five: Remove Obstacles. ... Step Six: Create Short-Term Wins. ... Step Seven: Build on the Change. ... Step Eight: Anchor the Changes in Corporate Culture.

Lewin's Planned Change Model

Change Model: Create a need for change in people's minds, implement change, establish the "new" change as the norm. Unfreeze-change-refreeze

Satisficing

Choosing an alternative because it meets some minimum criteria (detrimental because it prevents finding best option)

Moore's Law

Computer chip performance doubles every two years

Emotional bias

Decision Making Bias: Decision making influenced by the intuitive state we experience due to circumstances or personal interactions

Escalation of Commitment Bias

Decision Making Bias: Influence on decision makers that occurs when people become too attached to the decisions themselves (Pride)

Sunk-cost bias

Decision Making Bias: Influence on future decision making based on certain decision made in the past (Not wanting to give up on an investment because you've already committed time/money, even though the investment may be detrimental)

Anchoring Bias

Decision Making Bias: Our tendency to be overly influenced by numbers, and a failure to adjust our perspective once we have information.

Hindsight Bias

Decision Making Bias: Psychological phenomenon in which individuals tend to overestimate their own ability to have predicted an outcome that they would have been unable to predict before an event took place (I put money on the Cougars to win, after the win I act like I knew for sure they would win, even though I likely was not 100% positive)

Availability bias

Decision Making Bias: Tendency to rely on easily remembered information and a failure to seek out multiple perspectives (Someone who is more scared of flying than driving due to bigger news coverage when plane crashes happen, even though car crashes being more likely

Confirmation bias

Decision Making Bias: The tendency to accept information that supports your already established beliefs

Framing Bias

Decision Making Bias: Undue influence based on the way that a situation or information is presented (A democrat may be less inclined to vote yes on a bill proposed by a Republican than if the same bill was proposed by a democrat)

Evidence-Based Model (Pfeffer/Sutton)

Decision Making Process: Demand evidence, examine logic, treat organization as unfinished prototype, embrace wisdom (This process acknowledges that managers often don't have perfect information or rational thinking)

Incremental Model

Decision Making Process: Making decisions focused on short-term problems rather than the long term.

Classical Method

Decision Making Process: Obtain complete and perfect information, eliminate uncerainty, evaluate for decision (Decision maker must be knowledgable, logical and ethical)

Non-Rational Models

Decision Making Process: Potential explanations for how managers actually make decisions in the workplace. (These differ from the rational and evidence-based approaches, which propose how managers should be making decisions).

Intuition Model

Decision Making Process: Reaching a judgement through a rapid non-conscious process of holistic association (gut feeling)

Greenfield Strategy:

Designing or constructing a facility in a new location (building a subsidiary from the ground up)

Sociocultural , Technological, Market, Industry regulations

External Forces for Change

Opportunities and threats

External SWOT Analysis

Edward Deming

Father of Just-in-time Processes. Fourteen Points of Quality Management. Japanese industry post WWII

Fair Labor Standards Act (FLSA)

Federal law that establishes a minimum wage and requirements for overtime pay and child labor (enables unions as well)

Behavior appraisals

Form of Subjective appraisal based on the supervisors perception of an employees behavior ("He always has a great attitude")

mechanistic organization

Hierarchical, bureaucratic, organizational-structure characterized by (1) centralization of authority, (2) formalization of procedures and practices, and (3) specialization of functions.

Colonialism period (14th-20th century)

History of Entrepreneurship: Period of Expansion and growth with other people's money. International trade

Dutch-Mercantilism (15th-18th century)

History of Entrepreneurship: Period of Increased risk-taking, development of exploration, taxes, speculative activity, Dutch Tulip trade (this period led to creation of stock market)

Medieval Period (9th-14th century)

History of Entrepreneurship: Period of Introduction of banking, lending and Buy Local Principle

Industrial Revolution (18th-20th century)

History of Entrepreneurship: Period that entailed the mass production and scaling of products, services, and processes, based in the principles of production control (monopoly) and supply chain development (stability). Began in Britain.

Computer-age (mid 20th century-now)

History of Entrepreneurship: Period that increased technology that allowed rapid innovation.

Financial skills of Entrepreneurs:

How to raise money, how to spend that money

Disparate treatment

Intentional discriminatory dealing with individuals who belong to a legally protected group (one of two forms of discrimination

Human resources, employee authority

Internal Forces for Change

Strengths and weaknesses

Internal SWOT Analysis

Fiduciary Responsibility

Legal obligation placed on executives to make decisions that benefit the organization, rather than personal benefits.

Intended strategy

Original strategy developed by the firm

Subjective appraisals

Performance evaluations based on a manager's perceptions of an employee's traits or behaviors

Objective appraisals (aka Results based appraisals)

Performance management strategy tracking physical results to measure performance

Management activities

Planning, Budgeting, Organizing, Controlling, Coordinating (PBOCC)

Situational control components

Position Power, Task Structure, Leader-Member Relations

expert power

Power based on having a high level of expertise or knowledge in a given area (most powerful when number of experts are limited, NFL quarterbacks)

Reward Power

Power based on the extent to which someone can control providing rewards (Not necessarily physical rewards, can be praise/recognition)

Legitimate power

Power derived from formal position or rank within an organization (military, executives, government, etc.)

Referent Power

Power to influence, usually derived from admiration or respect (Celebrities, charismatic people)

1. Problem Identification 2. Generate potential solutions 3. Evaluating alternatives (decision making) 4. Implement and monitor

Problem Solving Model

Supplier, Input, Process, Output, Customer

Process Framework

Category R4

Situational Leadership Model: High motivation/high task skills (use delegating leadership style)

Category R2

Situational Leadership Model: High motivation/low task skills (use selling leadership style)

Category R3

Situational Leadership Model: Low motivation/High task skills (use participating leadership style

Category R1

Situational Leadership Model: Low motivation/low task skills (use telling leadership style)

Emergent strategy

Strategies developed due to changing external or internal circumstances

Organic Organization

Structure characterized by (1) decentralization of authority, (2) low specialization and the spread of knowledge, (3) high levels of horizontal communication and collaboration.

job description

Summary of the tasks, duties, and responsibilities that are associated with a particular job (Knowledge skills/abilities. You get job description from the job analysis)

Situational Leadership Model: 2 Variables

Task ability, motivation

Leadership activities

Teaching, Inspiring, Mentoring, Empowering, Coaching (TIMEC)

Efficiency

The ability to accomplish a task utilizing available resources in the best way possible (Doing things right)

influence

The ability to have an effect on the development or behavior of someone or something

Power

The ability to influence the behaviors of others

Entrepreneurship

The ability to scale an idea into a revenue-generating business over time

Realized Strategy

The firm's overall goal (intended and emergent ultimately lead to this)

quid pro quo (this for that)

The granting or declining of benefits based on the acceptance of a sexual demand (Me Too Movement)

Effectiveness

The measure of how well a task or goal was accomplished (Doing things right). Most important

Strategic Plan

The method or plan designed to achieve a goal or objective

Organizational Design

The process by which managers select and manage various dimensions and components of organizational structure and culture so that an organization can achieve its goals.

decision making

The process of choosing from alternatives to maximize an outcome

Job Design

The process of defining or redefining jobs within the organization (Changes/design are based off the job analysis)

Problem solving

The process of developing alternatives to address a certain issue

Job Analysis

The process of gathering detailed information about the various jobs within the organization (Is the job still true to what it was two years ago? Does a new job need to be created/adjusted?)

Employee Turnover

The rate at which employees leave an organization (takes 2 years to make up for loss of employee due to retraining)

Employee Retention

The rate at which employees stay with an organization

Bounded rationality

The view that there are many constraints to rationality

Prospect Theory

Theory that we fear losses more than we value gains (Detrimental to proper decision making)

Toyota Production System (Toyoda, Ohno)

Toyota's production theories that lead to modern thought on innovation/quality. Never stop improving (led to lean 6 sigma)

Bottleneck

When a constraint causes an organization to be unable to meet the demand of its customers.

Stay interview

a periodic one-on-one structured retention interview between a manager and a highly valued "at-risk-of-leaving employee" that identifies and then reinforces the factors that drive an employee to stay.

SWOT analysis

a planning tool used to analyze an organization's strengths, weaknesses, opportunities, and threats

Sharing economy

an economic system in which assets or services are shared between private individuals, either free or for a fee (Uber

Strategic Management

an evolving process of analysis, decision-making and action that leads to long-term competitive advantage.

centralized authority

an organization structure in which decision-making authority is maintained at the top level of management

Network structure

an organizational structure in which administration is the primary function, and most other functions are contracted out to other firms (low control)

coercive power

power based on the extent to which someone can control distributing punishment (demotion/termination. Most likely form of power to be abused)

Lean 6 sigma

process improvement methodology designed to improve quality. DMAIC Define Measure Analyze Improve Control

Equal Employment Opportunity (EEO)

the condition in which all individuals have an equal chance for employment, regardless of their race, color, religion, sex, age, disability, or national origin

Performance management

the process through which managers ensure that employees' activities and outputs contribute to the organization's goals