OB Chapter 1
scientific management
Based on the belief that productivity is maximized when organizations are rationalized with precise sets of instructions based on time and motion studies
5 managerial practices that promote ethical behavior
Close gaps between knowledge about what to do and actual behaviors, be selective about who you hire, socialize new hires to promote ethical values, implement systems and procedures to promote accountability for ethical behavior, fairly allocate organizational resources
T or F? Scientific Management likes individualism.
False
T or F? negative correlations are always bad
False
T or F? companies with product innovation do not like when employees give their own ideas, because it is usually a waste of time.
False.
Specialization strategy
Focusing on a narrow market segment or niche and pursuing either a differentiation or cost leadership strategy within that market segment
managers
Organizational member who are responsible for the attainment of organizational goals by planning, organizing, leading, and controlling the efforts of others in the organization
4 Managerial Functions
Planning, Organizing, Leading, Controlling Check textbook page 4 for descriptions
Edwards Deming
"guru of quality management". plan-do-check-act cycle. 14 principles. 94% of errors comes from the system, not individual employees./
Mary Parker was known as
"prophet of management". Created brainstorming and groupthink effect
Barnard's three core executive functions
establishing+maintaing system of commication, securing essential services from other members, formulating organizational purposes and objectives
Formula for Ethical Behavior
ethical values + clear expectations + reward/ punishment = ethical behavior
organizational behavior
explains and predicts how people and groups interpret events, react, and behave in organizations; describes the roles of organizational systems, structures, and processes in shaping behavior
commission
failure to follow sound, established operational and ethical practices
organic growth
firm opens new stores
Modern managerial and organizational challenges include
globalization and diversity, technology, ethics, and social responisbility
product innovation competitive advantage companies want
good R&D who have an entrepreneurial mindset
examples of competitive advantage?
innovation, distribution, speed, convenience, first to market, cost, service, quality, branding. Page 7
5 key resources
time, people, money, info, capital assets
T or F? Operational excellence functions with tight margins and rely more on teamwork than individual performance
true
remission
pressure by a manager or others to make unethical choices
Organizations using a differentiation strategy try to develop a competitive advantage based off of ______ _________________
product innovation
correlation
reflects size and strength of two statistical variables, ranges from -1 to 1. 0 means no correlation, 1 is positive, and -1 is negative
what does growth strategy success depend on?
the firm's ability to find and retain the right number and types of employees to sustain its growth.
parochialism
viewing the world solely through one's own eyes and persepctive
human relations movmenet
views organizations as cooperative systems and treats workers' orientations, values, and feeling as important parts of organizational dynamics and performance.
competitive advantage
anything that gives a firm an edge over rivals in attracting customers and defending itself against competition
theory
collection of verbal and symbolic assertions that specify how and why variables are related, and the conditions under which they should and should not relate
two-way communication
communication is from worker to chief executive, as well as vice versa
growth strategy
company expansion organically or through acquisitions
organization
consists of people with formally assigned roles working together to achieve common goals
Social responsibility efforts should be integrated into the __________ of the organization to have a lasting effect
culture
Companies that use specialization often build competitive advantage on the idea of
customer intimacy
Who created the scientific method?>
Sir Francis Bacon
Why do some firms run this?
To use a premium price
T or F? Cost leadership strategy companies are typically good at designing products that can be efficiently manufactured
True
According to Michael Porter on competitive advantage,
a company must be able to give customers superior value for their money
code of ethics
a decision making guide that describes that highest values to which an organization aspires.
meta analysis
a statistical technique used to combine the results of many different research studies done in a variety of organizations and for a variety of jobs
organizational culture
a system of shared values, norms, and assumptions that guide members' attitudes and behaviors
corporate social responsibility
businesses living and working together for the common good and valuing human dignity ie: starbucks pays more for beans and donates money to farmers and schools in foreign countries.
Differentiation strategy
developing a product or service that has unique characteristics valued by customers
product innovation
developing new products or services
customer intimacy
developing unique and customizable products or services to meet customers' need and increase customer loyalty ie: consulting, retail, banking organizations use this
What is the point of meta analysis?
is to estimate the true relationship between various constructs and to determine whether the results can be generalized to all situations or if the relationship works differently in different situations. Due to difference, no guarentee that any one organization would find the same relationship.
omission errors
lack of written rules
Operational excellence
maximizing the efficiency of the manufacturing or product development process to minimize costs
scientific method
method of knowledge generation that relies on systematic studies that identify and replicate a result using a variety of methods, samples, and settings
Biggest factor in strategy implementation?
new organizational culture, and new behaviors for employees
Three types of systematic erorrs?
omission, remission, commission
4 steps of Taylor's scientific management
replace rule of thumb methods with methods based on scientifically studying the tasks using time and motion studies, scientifically select, train, and develop workers rather than letting them do it themselves, managers provide detailed instructions and supervision, divide work nearly equally between workers and managers
global mindet
set of individual attributes that enable you to influence individuals, groups and organizations from diverse socio/cultural/institutional systems
OB provides an understanding for ______ ________ among management
soft skills
code of conduct
specifies expected and prohibited actions in the workplace and give examples of appropriate behavior
ethics
standards of behavior about how people ought to act in different situations
cost leadership strategy
striving to be the lowest cost producer for a particular level of product quality ie: Walmart
Hawthorne Effect
when people improve some aspect of their behavior or performance simply because they are being assessed
Socially responsible programs and policies include:
workplace diversity, favorable working conditions, nonexploitation of workers, work life balance, community volunterrism and charity, environmental green programs, partnering with environmentally friendly suppliers and companies
hypotheses
written predictions specifying expected relationships between certain variables
According to Federal Sentencing Guidelines for organizing, several elements to a complete ethics and compliance program are:
written standards for ethic conduct, ethic training, providing a way for seeking ethic related advice, providing a mechanism for reporting misconduct anonymously, disciplining employees who violate standards or law, evaluating ethical behavior as part of an employee's regular performance appraisals