Exam 1
Identify three of the five most significant mistakes made by managers.
1) insensitive to others by virtue of their abrasive, intimidating, and bullying management style. 2) being cold, aloof, or arrogant 3) Betraying a trust 4) Being overly political and ambitious 5) Being unable to delegate building a teams and staff effectively Pg 16
Identify the four basic steps in the management by objectives process.
Pg 97 Management by objectives 1)discuss possible goals 2) collectively select goals that are challenging attainable and consistent with the companys overall goals 3) jointly develop tactical plans that lead to the accomplishment of tactical goals and objectives 4)met regularly to review progress toward accomplishment of those goals
Define Effectiveness and explain their relationship to the process of management?
Effectiveness- accomplishing tasks that help fulfill organizational objectives trying to always better customer service and satisfaction
Define Efficiency and explain their relationship to the process of management?
Efficiency- getting work done with a minimum of effort, expense, or waste managers are always looking for more ways to save time, make more money and to make things better and easier on their employees
What principles did the Hawthorne Studies demonstrate to be true?
Elton Mayo- Studies at Western Electric Company 1) investigated the effects of lighting levels and incentives on employee productivity in the Relay Test Assembly Room where workers took approximately a min to put together a coil, armature, contact springs, and insulators in a fixture and secure the parts by means of four machine screws Basically the effect of his studies revealed the importance of group dynamics and cohesion in the workplace. In trying to build cohesion, many modern managers turn to team building exercises like trust falls, rope courses, and scavenger hunts. And while these activities might be fun, they aren't particularly effective at building group cohesion and teaching workers how to work well together. When planning your departments annual retreat skip the trust falls and get straight to work, focusing on helping the team discover how to produce great results. Its only when teams work together to overcome serious obstacles that team members learn to count on each other. "Building a good team" pg 37 for more review
Briefly identify the two types of conflict that may spontaneously occur in situations of group decision making. Comment on the probably effectiveness of group of group decisions given each type of conflict.
Pg 104 C-type conflict (cognitive conflict) disagreement that focuses on problem and issue related differences of opinion -group members disagree because of their different experiences and expertise lead them to view the problem and its potential solutions differently. also characterized by a willingness to examine compare and reconcile those difference to produce the best possible solution A-type conflict (affective conflict) disagreement that focuses on individuals or personal issues -Often results in hostility anger resentment distrust cynicism and apathy. Undermines team effectiveness by preventing teams from engaging in the activities characteristic of c type conflict that are critical to team effectiveness Ex: statements..."your idea" "our idea" "my department" "you dont know what you are talking about" "you dont understand our situation" Rather than focusing on issues and ideas these statements focus on individuals.
Differentiate between competitive inertia and strategic dissonance.
Pg 112 Competitive inertia- a reluctance to change strategies or competitive practices that have been successful in the past Sony for example was successful for 3 decades but because they relied on their same strategy for so long they ended up loosing some profit Strategic Dissonance - is a discrepancy between a company's intended strategy and the strategic actions manager take when actually implementing that strategy.
How do companies use situational analyses? What are the basic components of a situational analysis?
Pg 113 Situational analysis is also called SWOT analysis for strengths, weaknesses, opportunities and threats, is an assessment of the strengths and weaknesses in an organizations internal environment and the opportunities and threats in its external environment. It helps a company determine how to increase internal strengths and minimize internal weaknesses while maximizing external opportunities and minimizing external threats
List the five industry forces that determine overall levels of competition in an industry. Identify what happens to competition as these forces increase in strength.
Pg 123 -The character of the rivalry - a measure of the intensity of competitive behavior between companies in an industry -The threat of new entrants - a measure of the degree to which barriers to entry make it easy or difficult for new companies to get started in an industry -The threat of substitute products or services - a measure of the ease with which customers can find substitutes for an industry's products or services -The bargaining power of suppliers - a measure of the influence that suppliers of parts, materials, and services to firms in an industry have on the prices of these inputs -The bargaining power of buyers - a measure of the influence that customers have on a firm's prices The stronger these forces, the less attractive the industry becomes to corporate investors because it is more difficult for companies to be profitable.
List the four different adaptive strategies. One of them tends to have poorer performance than the others. Explain why.
Pg 126 Defenders - companies using and adaptive strategy aimed at defending strategic positions by seeking moderate, steady growth and by offering a limited range of high-quality products and services to a well defined set of customers Prospectors - companies using an adaptive strategy that seeks fast growth by searching for new market opportunities, encouraging risk taking, and being the first to bring innovative new products to market Analyzers - companies using an adaptive strategy that seeks to minimize risk and maximize profits by following or imitating the proven successes of prospectors Reactors - companies that do not follow a consistent adaptive strategy but instead react to changes in external environment after they occur, **Tend to be poorer performers because their approach is inherently unstable. Rather than anticipating and preparing for external opportunities and threats, reactors tend to react to changes in their external environment after they occur
When will people generally be indifferent to managerial directives or orders?
Pg 38 1) are understood 2) are consistent with the purpose of the organization 3) are compatible with the peoples personal interests 4) can actually be carried out by those people
Differentiate between closed systems and open systems.
Pg 41 Closed systems can function without interacting with their environments Open systems interact with their environments and depend on them for survival
What advantages does the systems approach to management offer that other approaches do not?
Pg 41 It forces managers to view their organizations as part of and subject to the competitive, economic, social, technological, and legal regulatory forces in their environments. It forces managers to be aware of how the environment affects specific parts of the organization Because of the complexity and difficulty of trying to achieve synergies among different parts of the organization, the systems view encourages managers to focus on better communication and cooperation within the organization. It makes managers acutely aware that good internal management of the organization may not be enough to ensure survival. Survival also depends on making sure that the organization continues to satisfy critical environmental stakeholders such as shareholders, employees, customers, suppliers, governments and local communities
How is your ability to be a manager influenced by acceptance of the contingency approach to management as the most effective way to manage?
Pg 42 The contingency approach- holds that there are no universal management theories and that the most effective management theory or idea depends on the kinds of problems or situations that managers are facing at a particular time and place.
Briefly differentiate between the external and internal environments that companies face. Explain why these environments are important.
Pg 45 External environments are the forces and events outside a company that have the potential to influence or affect it Ex: Floods in Thailand killed 600 people and created 45 billion dollars in damage that shut down production facilities of some of the best known technology companies in the world Pg 60 Internal environments - the events and trends inside an organization that affect management, employees, and organizational culture Internal environments are important because they affect what people think, feel and do at work. The key component in internal environments is organizational culture, or the set of key values, beliefs, and attitudes shared by members of the organization
Identify and provide examples of the two important ways in which socio-cultural changes and trends influence organizations.
Pg 50 Refers to the demographic characteristics general behavior, attitudes, and beliefs of people in a particular society. 1) Changes in demographic characteristics such as the number of people with particular skill or the growth of or decline in the number of people with particular population (marital status, age, gender, ethnicity,) affect how companies staff their businesses. Married women with children are much more likely to work today than they were four decades ago 2) In behavior, attitudes and beliefs Today with more married women with children in the work force, traffic congestion creating longer commutes, and both parents working longer hrs, employees are much more likely to value products and services that allow them to recapture free time with their families, and families are deliberately selective about how they spend their free time
Briefly differentiate the two basic approaches used for monitoring customers.
Pg 52 2 basic strategies for monitoring customers: Reactive and Proactive 1) Reactive strategy is to listen closely to customer complaints and respond to customer concerns 1) Proactive, Identifying and addressing customer needs, trends, and issues, before they occur Ex: if you tweeet or post on Face book that your planning a vacation at the beach or that your family has outgrown your current home, travel agencies and realtors that scan Twitter and Facebook comments will contact you before you start shopping
List and briefly define the four characteristics of successful organizational cultures.
Pg 61 Adaptability is the ability to notice and respond to changes in the organizations environment. Cultures need to reinforce important values and behaviors but a culture becomes dysfunctiional if it prevents change. One of the surest ways to do that is to discourage open discussion and disagreement. In cultures that promote higher levels of employee involvement in decision making employees feel a greater sense of ownership and resposiblility Clear company mission- strategic purpose and direction are appparent to everyone in the company, When managers are uncertain about their business environments, the mission helps guide the discussions, decisions, and behavior of the people in the company. Consistent organizational cultures- Actively defines and teaches organizational values, beliefs, and attitudes. Consisten with its code of conduct to do no harm to people. Protect the environement and comply with all laws and regulations
What is ethical behavior? Briefly comment on its implications for conducting business internationally.
Pg 68 Ethical behavior follows accepted principles of right and wrong. First level managers use operational single use and standing plans to implement the tactical plans
Define stakeholders. What are the two types of stakeholder groups? Give one example of each.
Pg 80 Stakeholders are persons or groups with a stake or legitimate interest, in a companies actions Primary stakeholders are groups on which the organization depends for its long term survival they include shareholders employees, customers, suppliers, governments and local communities Secondary Stake holders, such as the media and special interest groups can influence or be influenced by the company- any group that can influence or be influenced by a company and can affect public perceptions about the companys socially responsible behavior Ex: the Natural Resources Defense Council argues that the pipeline will increase oil sands production which they argue is one of the most energy and carbon intensive methods of retrieving oil
Briefly describe the benefits and pitfalls of planning.
Pg 89 Intensified effort, persistence, direction, and creation of task strategies. First managers and emplyees put forth greater effort when following a plan. Take two workers. Instruct one to do your best to increase production. Second planning leads to persistence that is working hard for long periods. Encourages persistence even when there may be little chance of short term success Third, benefit of planning is direction. Plans encourage managers and employees to direct their persisten efforts toward activities that help accomplish their goals and away from activities that dont. 4th Benefit is that it encourages the development of task strategies. Planning not only encourages people to work hard for extended periods and to engage in behaviors directly related to goal accomplishment, it also encourages them to think of better ways to do their jobs 5th It has been proved to work for both companies and individuals, companies with plans have larger profits and grow much faster than companies with out plans same holds true for individual managers and employees: There is no better way to improve the performance of the people who work in a company than to have them set goals and develop strategies for achieving those goals. Pitfalls: 1st pitfall of planning is that it can impede change and prevent or slow needed adaptation. Sometimes companies become so committed to achieving the goals set forth in their plans or on following the strategies and tactics spelled out in them that they fail to see that their plans arent working or that their goals need to change. 2nd pitfall is that planning can create a false sense of certainty. Planners sometimes feel that they know exactly what the future holds for their competitors their suppliers and there companies, However all plans are based on assumptions: Ex: The price of gasoline will increase by 4 percent per years" For plans to work the assumptions on which they are based must hold true. If the assumptions turn out to be false then the plans based on them are likely to fail. 3rd pitfall of planning is the detachment of planners. In theory strategic planners and top level managers are supposed to focus on the big picture and not concern themselves with the details of implementation. Detachment leads planners to plan for things they dont understand. Plans are meant to be guidelines for action, not abstract theories. Planners need to be familiar with the daily details of their businesses if they are to produce plans that can work.
Explain the purpose of the SMART guidelines. List each of the SMART criteria.
Pg 91 Honda Ex: Pupose is to set goals, to direct behavior and increase effort, goals need to be specific and challenging goals provide a target for which to aim and a standard against which to measure success Specific-Every car it makes will lead its class in gas mileage Measurable- since a class by class comparison of fuel efficiency with competitors will show whether Honda has achieved its goal Attainable- Depends on whether honda is able to develop innovative engines that are more efficient than its competitors Honda plans to enhance its VTEC system engine technology by minimizing friction within the engine by reducing the number of belts. Less friction will of course result in better gas mileage Realistic- given that honda is using and significantly improving existing engine technologies rather than inventing brand new ones Timely-Honda announced that it plans to achieve its goal in 3 years
Identify three ways of increasing goal commitment. Which one is most commonly used by managers?
Pg 92 Goal Commitment is the 1)determination to achieve a goal. So how can managers bring about goal commitment? the most popular approach is to set goals participatively, rather than assigning goals to workers, Managers and employees choose goals together. The goals are more liikely to be realistic and attainable if employees participate in setting them. Another technique for gaining commitment to a goal is to make the goal public. Top management can show support for a plan or program by providing funds speaking publicly about the plan or participating in the plan itself. Not sure if this is part of it........????? 1)Developing Effective Action Plans 2)Tracking Progress 3)Maintaining Flexibility
Define the terms decision making and rational decision making. Briefly differentiate between them.
Pg 98 -Rational decision making- a systematic process of defining problems evaluating alternative and choosing optimal solutions - Ex: Your boss comes to you requesting that you define and evaluate the various options for the companys social media strategy after all you tweet and us facebook etc.... and he doesnt even know how to reboot his computer. Furthermore your solution has to optimal because budgets and expertise are limited the company gets one maybe two tries to make their social media strategy work.****I dont get this one**** -Decision Making - the process of choosing a solution from available alternatives
What are the 4 management functions?
Planning, Organizing, Leading, Controlling Planning- determining organizational goals and a means for achieving them (best way to improve performance, encourages people to work harder, to work hard for extended periods, to engage in behaviors directly related to goal accomplishment and to think of better ways to do their jobs, companies that plan have larger profits and faster growth than companies that dont plan Organizing- deciding where decisions will be made, who will do what jobs and tasks, and who will work for whom Leading- inspiring and motivating workers to work hard to achieve organizational goals Controlling- monitoring progress toward goal achievement and taking corrective action when needed (involves setting standards to achieve goals, comparing actual performance to those standards, and then making changes to return performance to those standards)
List and briefly describe the four kinds of skills that companies look for in managers?
Technical Skills- the specialized procedures, techniques, and knowledge required to get the job done (Technical skills are most important for team leaders and lower level managers because they supervise the workers who produce products or serve customers. Team leaders and first line managers need technical knowledge and skills to train new employees and help employees solve problems. Technical knowledge and skills are also needed to troubleshoot problems that employees cant handle. They become less important as managers rise through the managerial ranks but still are important) Human Skills- the ability to work well with others (Mangers with human skills work effectively within groups encourage others to express their thoughts and feelings are sensitive to others needs and viewpoints and are good listeners and communicators. human skills are equally important at all levels of management from team leaders to CEOs, Conceptual Skills- the ability to see the organization as a whole, understand how the different parts affect each other, and recognize how the company fits into or is affected by its environment (such as the local community, social and economic forces customers and the competition. Good managers have to be able to recognize understand and reconcile multiple complex problems and perspectives, intelligence makes so much difference for managerial performance that managers with above average intelligence typically out perform mangers of avg intelligence by approximately 48 percent Motivation to Manage- an assessment of how enthusiastic employees are about managing the work of others (participate in competitive situations, behave assertively toward other, tell others what to do, reward good behavior and punish poor behavior, perform actions that are highly visible to others and handle and organize administrative tasks. Managers with a stronger motivation to manage are promoted faster are re rated as better managers by their employees