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