MGMT3000 Midterm #1

6 Phases of the decision making process:

1. identify and diagnose the problem 2. generate alternative solutions 3. evaluate alternatives 4. make the choice 5. implement the decision 6. evaluate the decision

improving brainstorming effectiveness

1.Choose participants based on their expertise and knowledge of the challenge. 3.Use well-thought-out questions as a platform to spark new ideas. 4.Break up large groups into subgroups of 3 to 5 people. 5.Ask subgroups to think deeply to generate 2 to 3 solutions for each key question explored. 6.Do not have the full group evaluate the winning ideas, but rather ask subgroups to identify their top 2 or 3 ideas. Describe next steps (for example, top management team will evaluate ideas). 7.Act quickly on key ideas and provide feedback to all participants.

Adequate planning requires several steps:

1.Determine how things will look when the decision is fully operational. 2.Chronologically order, perhaps with a flow diagram, the steps necessary to achieve a fully operational decision. 3.List the resources and activities required to implement each step. 4.Estimate the time needed for each step. 5.Assign responsibility for each step to specific individuals.

Goal displacement:

A condition that occurs when a decision-making group loses sight of its original goal and a new, less important goal emerges.

Maximizing:

A decision realizing the best possible outcome. Third Phase

Optimizing:

Achieving the best possible balance among several goals.

Microenvironment.

Affects all organizations and includes economic, technological, legal and political, demographic, social, and natural environment factors.

External environment:

All relevant forces outside a firm's boundaries, such as competitors, customers, the government, and the economy.

Contingency plans

Alternative courses of action that can be implemented based on how the future unfolds

Substitutes:

Alternative products or services. Potential threat.

Creation:

Bring a new thing into being

Steven is marketing manager for Abrams Technologies, a firm that sells environmental control systems to the coal-fired power industry. Steven's business is highly competitive, with many existing rivalries and new players. However, coal-fired power plants are being shut down in favor of substitute forms of energy, e.g., wind and natural gas. Thus, opportunities to sell environmental control systems to coal-fired power plants are rare, and his clients have many choices of providers and technologies. Steven's firm has long-term pricing agreements with its equipment suppliers, so Steven knows what external costs Abrams will incur on potential new projects for environmental control systems. The competitive force that appears to represent the lowest risk to Steven's firm is A: competition between existing rivals. B: impact of new competitors. C: power of suppliers. D: power of customers. E: impact of substitute or complement services or products.

C

Satisficing:

Choosing an option that is acceptable, although not necessarily the best or perfect

competition

Competition is most intense when: There are many direct competitors. Industry growth is slow.Product/service is not easily differentiated

Barriers to Entry:

Conditions that prevent new companies from entering an industry. Government policy, capital requirements, brand identification, cost disadvantages, and distribution channels.

Globalization

Corporations operate worldwide, transcending national borders by tapping international markets

Karl's office has always used Bentley computers. His technical people have suggested that he switch all his employees over to Best computers. Karl is reluctant because it will mean not only replacing all the computers but also buying all new software and taking the time to train everyone. Karl is worried about A: barriers to entry. B: benchmarking. C: environmental uncertainty. D: switching costs. E: strategic maneuvering.

D

emotional intelligence

EQ the skills of understanding yourself (including strengths and limitations), managing yourself (dealing with emotions, making good decisions, seeking and using feedback, exercising self-control), and dealing effectively with others (listening, showing empathy, motivating, leading, and so on).

Technology Change

Engagement in artificial intelligence (AI) and machine learning, data protection, 5G etc. The internet can be a threat and business opportunity. AI can interfere between humans and technology and society

Competitive Landscape includes...

Globailization, Technology change, Collaboration, and knowledge management

Inputs:

Goods and services organizations take in and transform them into products.

Norming

Group members agree on their shared goals, and norms and closer relationships develop.

Forming

Group members attempt to lay the ground rules for what types of behavior are acceptable.

Storming

Hostilities and conflict arise, and people jockey for positions of power and status.

Ready-made solutions:

Ideas that have been seen or tried before.

Speed

Important quality measures often pertain to the service customers receive The speed requirement has increased exponentially. Everything, it seems, is on fast-forward. Speed is no longer just a goal of some companies; it is a strategic imperative Speed: Fast and timely execution, response, and delivery of products.

Competitive environment.

Includes the firm and its rivals, suppliers, buyers, new entrants, and substitute or complementary products

What are the six phases in the ideal decision-making process?

Innovation, Quality, Service, Speed, Cost effectiveness, Sustainability

pros of using groups to make decisions

Larger pool of information More perspectives and approaches Intellectual stimulation People understand the decision People are committed to the decision

interpersonal roles include:

Leader: staffing, developing, motivating people Liaison: maintain network of outside contacts Figurehead: perform symbolic duties

Supply chain management:

Managing the acquisition of materials, their transformation into products, and the distribution of products to customers.

demographics

Measures of various characteristics of the people who make up groups or other social units. Demographic trends: •Aging of the workforce. •Increasing education and skill levels. •Immigration factors. •Increasingly diverse workforce.

Sustainability

Minimizing the use and loss of resources, especially those that are polluting and nonrenewable.

informational roles include:

Monitor: seek information, serve as the center of communication. Disseminator: transmit information from source to source Spokesperson: speak on behalf of organization

Custom-made solutions:

New, creative solutions designed specifically for the problem

Groupthink:

Occurs when people choose not to disagree or raise objections because they don't want to break up a positive team spirit.

cons of using groups to make decisions

One person dominates Satisficing Groupthink Goal displacement Social loafing

organization culture

Organization culture is a system of shared values about what is important and beliefs about how the world works. A company's culture provides a framework that guides people's behavior on the job. For example, the way people dress and behave, the way they interact with each other and with customers, and the work habits that managers value are usually quite different at a bank than they are at a music company, and different again at a law firm or an advertising agency.

Complements: .

Products or services that increase purchases of other products. Potential opportunity

Switching costs:

Provide resources or inputs needed for production. Fixed costs buyers face if they change suppliers.

Quality

Quality is the excellence of your product (goods or services). Most companies claim that they are committed to quality. Customers expect high-quality goods and services, and often they will accept nothing less. Quality can be measured in terms of product performance, customer service, reliability (avoidance of failure or breakdowns), conformance to standards, durability, and aesthetics. Historically, quality referred to attractiveness, lack of defects, and dependability. Today it is about preventing defects before they occur, achieving zero defects in manufacturing, and designing products for quality. A philosophy of continuous improvement

Collaboration

Requires productive communications among different departments, divisions, or subunits of the organization. Coopetition: simultaneous competition and cooperation among companies with the intent of creating value.

Technology

Technological advances create new products, advanced production techniques, and better ways of managing and communicating. In addition, as technology evolves, new industries, markets, and competitive niches develop.

Economy

The economic environment affects managers' ability to function effectively and influences their strategic choices.

Performing

The group channels its energies into performing its tasks.

Outputs:

The products and services organizations create.

Knowledge Management

The set of practices aimed at discovering and harnessing an organization's intellectual resources - finding , unlocking, sharing, and capitalizing on people expertise, skills, wisdom and relationships

What are the 3 levels of management?

Top-level Managers Middle-level managers Frontline managers

useful questions that should be asked in the implementation stage of decision making.

What problems could this action cause? What can we do to prevent the problems? What unintended benefits or opportunities could arise? How can we make sure they happen? How can we be ready to act when the opportunities come?

Evaluating alternatives:

Which solution will be the best? What consequences will occur? How will you measure success?

Customers:

Without customers to purchase its goods or services, a company won't survive. Final consumer (end users). Intermediate consumer (wholesalers and retailers).

technical skills

ability to perform a specialized task involving a particular method or process (individual contribution)

Organizations are open systems—that is, they are affected by and in turn...

affect their external environment. For example, from their environment they take in inputs such as human resources and investment capital and transform them into products that are outputs to their environment.

Reflective:

analytic, slow and deliberate.

Top-level Managers

are the senior executives of an organization and are responsible for its overall management. Often referred to as strategic managers.

organizing

building a dynamic organization Assembling and coordinating resources needed to achieve goals

Innovation

comes from people and must be a strategic goal. A firm must: Adapt to changes in consumer demands and to new competitors. Continually innovate—especially important in the global marketplace.

Roles of an effective manager include:

decisional roles, informational roles, interpersonal roles

Planning

delivering strategic value: •Systematically making decisions about goals and activities to be pursued. Value is an important concept in the planning function. It refers to the monetary amount associated with how well a job, task, good, or service meets a user's needs.

Reflexive:

done quickly and without careful thought.

decisional roles include:

entrepreneur: search for new business, initiate new projects. disturbance handler: take corrective action during crises. resource allocator: provide funding and other resources, make significant organizational decisions. negotiator: negotiates with internal and external parties

When investors bid up stock prices, companies have less capital to fuel their strategies. True False

false

4 stages of team development

forming, storming, norming, performing

social capital

goodwill stemming from your social relationships (•Be both a specialist and a generalist. •Be self-reliant. •Connect with people. •Actively manage your relationship with your organization. •Survive and thrive.)

cost competitiveness

if you can offer a desirable product at a lower price, it is more likely to sell. Cutting energy waste can cut costs and help the bottom line while also helping the environment. Cost competitiveness: Keeping costs low to achieve profits and be able to offer prices that are attractive to consumers. Companies must pay close attention to cost because consumers can compare prices from thousands of competitors.

Managing Group Decision Making

leadership, creativity, constructive disagreement ((1) an appropriate leadership style, (2) the constructive use of disagreement and conflict, and (3) the enhancement of creativity.)

controlling

learning and changing Monitoring performance and making needed changes

Middle-Level managers

managers are located in the organization's hierarchy below top-level management and above the frontline managers. Sometimes called tactical managers, they are responsible for translating the general goals and plans developed by strategic managers into more specific objectives and activities

Service

means giving customers what they want or need, when they want it. World-class service focuses on continually meeting the needs of customers and establishing mutually beneficial long-term relationships Service: Giving customers what they want or need, when they want it. Continually meeting the needs of customers and establishing mutually beneficial long-term relationships. Making it easy and enjoyable for the customer.

leading

mobilizing people •Efforts to stimulate high performance by employees.

The competitve environment: Porter's 5 Forces

new entrants, customers, substitutes and complements, suppliers,

Frontline Managers

or operational managers, are lower-level managers who supervise the operations of the organization. These managers often have titles such as supervisor, team leader, or assistant manager.

interpersonal and communication skills

people skills that represent the ability to lead, motivate, and communicate effectively with others (Lead, motivate, and communicate with others)

What are the 4 functions of management

planning, organizing, leading, controlling

the external environment includes all...

relevant forces outside the organization's boundaries.

Managers Toolbox

scenario, forecasting, benchmarking

conceptual and decision skills

skills related to abilities that help identify and resolve problems (Identify and resolve problems for the benefit of the organization - Result oriented)

What are the 3 must-have Management skills?

tecnhical, conceptual and decision, and interpersonal and communication

Diagnosing culture:

useful clues about culture •Corporate mission statements and official goals. •Important business practices. •Symbols, rites, and ceremonies. •The stories people tell. •Cultural assessments.

Scenario:

•A narrative that describes a set of future conditions. Best-case, worst-case

Leader must:

•Attempt to minimize process-related problems. •Avoid dominating discussions or allowing others to. •Encourage less vocal group members to speak up. Not allow group to pressure people into conforming

Weak Cultures:

•Different people hold different values and there is confusion about corporate goals.

How do you encourage creativity in others?

•Give creative efforts credit. •Don't punish creative failures. •Avoid extreme time pressure. •Stimulate and challenge people intellectually.

Benchmarking

•Identifying the best-in-class performance by one or more companies in a given area and comparing your processes to their processes.

Negative feedback:

•Implementation will require more time, resources, effort, or thought. •Solution wasn't good enough.

Role of managers

•In publicly-held companies, managers may feel required to meet Wall Street's earnings expectations. •Managers may focus on short-term results at the expense of long-term success. •Some managers may be tempted to engage in unethical or unlawful behavior that misleads investors. •Keep in mind that economic conditions change over time and are difficult to predict. •Stock markets are a vital influence. In publicly held companies, managers throughout the organization feel required to meet Wall Street's earnings expectations.

Strong Cultures:

•Majority of people within the organization agree on organizational goals.

Managing Culture:

•Manage culture actively. •Communicate with employees regularly and set the right examples. •Celebrate and reward those who exemplify desired culture.

Forecasting:

•Method for predicting how variables will change the future.

Organizations depend on the natural environment to provide them with resources.

•Operations impact quality and quantity of resources. •Impacts on local citizens.

How do you become more creative?

•Read widely and try new experiences. •Exchange ideas and give feedback.

Laws and regulations: regulators include agencies such as...

•Securities and Exchange Commission (S E C). •Occupational Safety and Health Administration (O S H A). •Equal Employment Opportunity Commission (E E O C). •National Labor Relations Board (N L R B). •Office of Federal Contract Compliance Programs (O F C C P).

Positive feedback:

•Suggests the decision is working. Implies that the decision should be continued and applied elsewhere