MAN 3025 Test 2 Guide (Ch. 5 ,7, 10, 11, 14)

Grouping Jobs: Departmentalization

*Departmentalization* -The process of grouping jobs according to some logical arrangement. *Rationale for Departmentalization* -Organizational growth exceeds the owner-manager's capacity to personally supervise all of the organization. -Additional managers are employed and assigned specific employees to supervise. Notes- Can't have everyone report to CEO. We group jobs. We will have 1-2 questions on exam that describe situation and have to identify what is basis of that departmentalization. -By function (marketing, accounting, human resources). -Product- Divide comp by product. Hardware and software. Then marketing, finance, etc are functions that support individual products. -By location- divide by territory. Domestic vs. International. -By customer- have major types of customers that are diff enough from each other that you need to have separate departments. Accounts diff for customers, Fed Gov separate from consumers.

Advantages and Disadvantages of Franchises

*Disadvantages- -Start-up fees to purchase franchise. -Limitations of franchise (market area, product, customers). -Loss of independence due to imposed operational controls of franchiser. *Advantages* -Reduced financial risk of new business success through experience provided by franchiser. -Training, financial, and management support by franchiser. Notes- Training- They don't want you failing.

Environmental Challenges of International Management Bonus hint: be sure you understand infrastructure, as students often have difficulty with it.

*Economic* Environment -Economic system (public or Private ownership) Natural resources (oil, etc.) Infrastructure (schools, roads, etc.) *Political and Legal* Environment Government stability Property rights Trade incentives, relations, and controls (tariffs, quotas) *Cultural* Environment Values, symbols, beliefs, language, individual behaviors --All have an arrow pointing to International Management Functions. ---------- Key Concepts -Tariffs- Taxes on goods shipped across national boundaries. -Quotas- Limits on the number or value of goods that can be traded as exports or imports. -Export Restraint Agreements- Voluntary limits on the volume or value of goods exported to or imported from another country. -Subsidies and "Buy National" Laws- Protection for domestic businesses from foreign competition. Notes- Tariffs- many countries in Caribbean and south America, they grow sugar. So we impose tariffs so our sugar can compete. Quotas- how many of those goods can come in (like cars). Export Restraint Agreements - countries voluntarily agree to what they're going to sell. Subsidies - gov helps subsidize to keep it going. Buy national - encouraged to product our industry. ------- The Cultural Environment- Individual differences across cultures: -Social orientation- A person's beliefs about the relative importance of the individual versus groups to which that person belongs. -Power orientation- The beliefs that people in a culture hold about the appropriateness of power and authority differences in hierarchies such as business organizations. Notes- -There are diff orientations. Social orientation- am I important or is the group important? In US, it is "me". In Asian countries the group is more important. Power orientation- means how people accept the diff between low power people and high power people.

First Mover Advantages

*First-Mover Advantage* -Exploiting an opportunity before any other firm does. *Why first-mover advantage is not taken by larger firms:* Decisions are slowed by organizational hierarchy. Size of the assets at risk makes large firms overly cautious. Notes- -First one, therefore got a head start, are standard by which others can be judged.

Emphasizing Distinctive Competencies

*Identifying Niches in Established Markets* -Niches represent a market segment currently unexploited in a market where several large firms compete. -Niches offer a competitive advantage to small businesses. *Identifying New Markets* -Using the transfer of an existing product/service to explore a new market. -Creating new industries/products/services.

Types of Operations

*Single-Use plans*- -Developed to carry out a course of action not likely to be repeated in the future. *Program*-Single-use plan for a large set of activities. *Project*-Single-use plan of less scope and complexity than a program. *Standing Plans*- -Developed for activities that recur regularly over a period of time. -*Policy*- Standing plan specifying the organization's general response to a designated problem or situation. -*Standard operating procedure*- Standing plan outlining steps to be followed in particular circumstances. -*Rules and regulations*- Standing plans describing exactly how specific activities are to be carried out. Notes- Single- Use Plans- Not likely to happen again. Standing plans- reoccurring on regular basis. Set of procedures (open store, log into comp, log out at night, etc).

Structure of Entrepreneurial Organizations

*Starting the New Business* *Buying an Existing Business* -Business has a proven ability to draw customers and make a profit (the business is a going concern). -Networks (e.g., customers and suppliers) are established. -Negative: New owners inherit any existing problems. *Starting from Scratch* -Avoids problems associated with previous owners. -Freedom to choose suppliers, equipment, location, and workers. -Negative: More business risk and uncertainty. Notes- Buying an existing Business- don't need to start it up, you grow it from what's in place. Location, suppliers, etc. But might be issues there from before like people might have negative feelings from Restaurant. Inheriting their probs too. -Or you can purchase a franchise.

Tall versus Flat Organizations

*Tall Organizations* -Are more expensive because of the number of managers involved. -Foster more communication problems because of the number of people through whom information must pass. *Flat Organizations* -Lead to higher levels of employee morale and productivity. -Create more administrative responsibility for the relatively few managers. -Create more supervisory responsibility for managers due to wider spans of control.

Franchising

*The Franchising Agreement* -Governs the operation of a franchise business by the entrepreneur (the franchisee) under a license by a parent company (the franchiser). -The entrepreneur pays the parent company for use of trademarks, products, formulas, and business plans. Notes- Purchase the right to also have the license of that comp. They tell you what to do, where to go. One of the circumstances but success rate is much higher, they're experts.

Barriers to Goal Setting and Planning

-As part of managing the goal-setting and planning process, managers must understand the barriers that can disrupt them. -Managers must also know how to overcome them. Major barriers- Inappropriate goals, Improper reward, system, Dynamic and complex environment, Reluctance to establish goals, Resistance to change, Constraints. Overcoming the barriers- Understanding the purposes of goals and planning, Communication and participation, Consistency, revision, and updating, Effective reward system --Inappropriate goals- Like manager just telling you that now you have to sell 5 cars a month instead of 2. With no incentives or means whatsoever. -Improper Reward System- Means reward isn't worth effort. -Dynamic and complex environment- Means the environment or industry you're in is chainging so rapudly it's hard to set goals. -Reluctance to established goals- Now there's a parameter that I'm going to measure you... -Resistance to change- People don't like change. -Constraints- Not giving me what I need to meet new goals of selling 5 cars instead of 2, like discounts for customers, etc. -Understanding the purposes of goals and planning- make sure people you're giving goals to know what they're for. -Effective Reward System- Give reasonable rewards Notes- Want managers to make goals and plans, but sometimes people resist. Recognize barriers and over - come them.

Limitations of Job Specialization

-Boredom and dissatisfaction with mundane tasks. -Anticipated benefits do not always occur.

Factors Influencing the Span of Management

-Competence of supervisor and subordinates (the greater the competence, the wider the potential span) -Physical dispersion of subordinates (the greater the dispersion, the narrower the potential span) -Extent of nonsupervisory work in manager's job (the more nonsupervisory work, the narrower the potential span) -Degree of required interaction (the less required interaction, the wider the potential span) -Extent of standardized procedures (the more procedures, the wider the potential span) -Similarity of tasks being supervised (the more similar the tasks, the wider the potential span) -Frequency of new problems (the higher the frequency, the narrower the potential span) -Preferences of supervisors and subordinates Notes- -How to determine how many people to report to someone. -On Exam, scenario is described. If all supervisors and subs are very confident (good at their jobs), then you can have more people reporting to you (boss or CEO) because they have less questions because more people know their jobs. -If everyone is doing accounts payable (the same task), you can have more people reporting to you because all the questions are about accounts payable so you can supervise more.

Evo (video) 7:23

-De-centralized- empowers employees to make decisions. -Flat Organization. -Want to stay flat.

How Gardens and Gun Magazines Defies Industry Slump Article

-How are Magazine sales in the U.S.? -Magazines were on the way out. Advertisers are shifting to digtal outlets. Affluent readers have helped the industry and now subscriptions and advertising sales are up, and the Charleston-based magazine now has "real, distributable profit." The economics of single-title publishers have been dicey for a long while. -Which concept from Ch. 10 Does Garden & Gun Illustrate? -Gardens & Guns represents a niche, with intense reader engagement and a modest cost structure." It focuses on everything southern from ham biscuits to bird-dog trainers. Remains tightly focused on food, drink, the land, travel, and the sporting life. Roughly 72% of subscribers live in the Southeast or Southwest. -How can this success be a Lesson for you, as an entrepreneur? -This success can be a lesson for us as entrepreneurs because it teaches you to give the people what they want, their unmet demands. Identify niches and give people what they want. Focus on a sub market instead of a too general or broad market. Like here, the mag's readers have a median age of 54 and the niche publication has only a modest digital presence. They aren't a mass magazine. The magazine has never shied away from its love of field sports such as bird hunting. They positioned themselves as a national lifestyle publication with a fanatical readership.

Growing up in a time of Fear: Confronting Stereotypes about Muslims and Countering Xenophobia

-Per Webster Dictionary: "Xenophobia is a fear or hatred of strangers or foreigners." -Is Xenophobia new to the U.S.? -Which Ethnic/Religious groups have/are experienced Xenophobia? -In what ways are Muslims Diverse? -Can employers prohibit the wearing of a Hijab in the workplace? -Muslims from Indonesia, Bangladesh, Turkey, Somalia, and Guyana. -Some Muslims are religious and attend mosque every week, others are nonpracticing. Some are dark-skinned, others are light-skinned. Some Muslim women wear a head scarf, or hijab, and others don't. -Ignorance also makes people vulnerable to hate speech by demagogues and fearmongers - whether about Catholics in the 1920s, Jews in the 1930s or Muslims today. German-Americans were targeted when the US declared war on Germany is World War I, Russian and Eastern European immigrants were looked on with suspicion after the Bolshevik Revolution during the first Red Scare, and Japanese-Americans were rounded up into internment camps after the attack on Pearl Harbor. -Ethnic groups target of mass suspicions or prejudice in the past; Native Americans, African salves and African-Americans, Irish Immigrants, German immigrants, Chinese immigrants, Italian immigrants, Catholic immigrants, Russian and Eastern European immigrants, Jewish immigrants, Japanese immigrants, and Mexican immigrants. -In June, a young Muslim woman won a Supreme Court case against Abercrombie & Fitch which had refused to hire her because she wore a head scarf. The company said the scarf clashed with its dress code, which called for a "classic East Coast collegiate style."

Decentralization and Centralization

-Refer again to WSJ Article, Whole Foods Attempts to Revamp its Approach, 2/16/16 by Ilan Brat *Decentralization*- -Systematically delegating power -and authority throughout the -organization to middle- and lower-level managers. *Centralization*- -Systematically retaining power and authority in the hands of higher-level managers. Notes- -Decentralization- Empowers people to make decisions. Middle and Lower lvl have more opportunities to make decisions. -Centralization- All decisions are made at the top.

Sample Questions

-Renada tax attorney - her business is a domestic business. -Boeing sells airplanes, it has suppliers around the world too. It is multinational. -Ebay is based in San Jose, Buyer and sellers are located around the world. They are international. -Joint-venture- two comps work together. -Direct investment is highest level. They make direct investment in that country. -Which is least intense level of international business activity? exporting and importing. -The NFL and team owners allows merch to be sold with logos on them, the team allows these sales and get some $$. Licensing. -Which is a form of international business involvement in which 2 or more firms have an equity in operations. Joint Venture. -Compassion international is children charity that provides schooling and training for poor kids around the world. It engages in *Direct Investment* when entering another country. -When google set out to buy Motorola, that is strategic (comes from top). -Long term is 5+, intermediate is 1-5 years, short term is less than 1 year. -Owners set goals for next 3 years. Intermediate. -Sarah has idea to make undergarments, files patents, sells them in her own company. She is an Entrepreneur. -Small business have sales not significant enough to impact their environment. -Creating niche, gardens and guns. -First mover advantage, like Gatorade. -1st toy comp to sell stuffed with codes plushies, they have 1st mover advantage. -What is most common for entrepreneurs? Personal finance resources. -The most significant disadvantage to franchise? High start up cost. -Job specialization, does the same job everyday (like putting a car door in a car). -Which of the following describes advantage of job specialization? Employees become experts. -Chris Johnson is running back in NFL, he doesn't play other positions. Job Specialization. -Workers at McDonalds are trained to do diff thing, this is example of Job Rotation. -Job enlargement is other alternative, more work, same pay. Job enrichment (more decisions). Work teams... -Workers make whole wheel chair instead of putting one or two pieces like before. Job enlargement. -Ways to make departmentalization. -A manufacturer has divisions of manufacturing; resources, marketing, financing. Part of *functional department*. Dividing comp by function. -Semunds comp has departmentalization for hospitalization for hospitals where 1 group is assigned to hospitals, other is not assigned to hospital. Customer. -Challenges manager engage in business, political legal, economics, cultural (like it's ok to spit in India), Infrastructure (roads, highways, ports, hospitals). -Which is not example of economic challenge? a. Absence of power plants, *b.Lack of edu*, c. recession, d. few natural resources. -A nation's cost of living is part of? Economic environment. -Satellites, shipping forts, airports, rail roads, education systems, are part of infrastructure. -When starbucks operates in other countries it customizes snacks to country's taste. Cultural. -In Japan, apples are expensive, and are traditionally presented as gifts, apples are grown with wrapping to preserve them. When Washington wanted to export apples to Japan, it faced Cultural challenge. -The US gov limits how many autos can be imported, this is an example of quota (# of items that can come to US). -The cultural challenge of international management included Language. -An example of a cultural challenge in China is, censoring of all postings on the internet, *bowling is the new trend (is a cultural challenge)*,China has budgeted 240 Yuan to clean up public toilets (economic), and 1 child policy they had (political legal). -Which of the following comes directly from orgs mission statement? a.Operational plans, b.*strategic* goals, ... -The ____ of choice waste management would be to expand operations in 2 or more countries this year. Strategic. (comes from the top). -A strategic goal for Waste Management would be to increase recycling by 10% everywhere. Then a *tactical* goal would be to develop a recycling campaign for rural areas. -Which refers to # of subs that can effectively report to manager? Span of management. -If a manager has only few subs, her span of management is *TALL* (not many reporting to that person). -A wide span of manages produces a *Flat* org. -Tammy is deciding how many subs to assign to supervisor, they're in the same area of company, capable. She should use a *wide span of management.* -The delegation process, 3 steps assign responsibility, granting authority, creating accountability. (Developing control system). -Which of the following reg could have prevented mining accident? Occupational safety act (OCEA). -Title 7, 5 protected characteristics. -Which isn't one of 5? Race, gender, *age*, color, national origin? There is a separate law about age. -What law created minimum wage and overtime wage? Fair labor standards. -Title 7 is enforced by *Equal employment opportunity commission*. -Which violates equal pay act? Refusing to hire women, paying men more than women because he has worked longer (seniority), paying men more than women because he has more merit, *paying men more than women because she is 2nd dual worker in her house.* -On which of these basis does current law allow employers to pay diff on same job? Performance. -Identifying current employees that would like to change jobs? Internal recruiting. -Nicki asked questions about retirement plan, she's asking about *benefits*.

Right to Work

-Right to work- don't get it confused with employment at will. Right to work at comp that has a union without joining the union.

Fair Labor Standards Act (FLSA)

-Sets a minimum wage and requires overtime pay for work in excess of 40 hours per week for non-exempt employees. -Salaried professional, executive, and administrative employees are exempt from the Act's minimum wage and overtime provisions.

McDonalds 2:23 mins (the founder trailer)

-Started as a milkshakes salesman. -Franchises

Domestic Controls on International Trade

-Tariffs- Taxes on goods shipped across national boundaries. Quotas-Limits on the number or value of goods that can be traded as exports or imports. -Export Restraint Agreements- Voluntary limits on the volume or value of goods exported to or imported from another country. Subsidies and "Buy National" Laws Protection for domestic businesses from foreign competition. Notes- Tariffs- many countries in Caribbean and south America, they grow sugar. So we impose tariffs so our sugar can compete. Quotas- how many of those goods can come in (like cars). Export Restraint Agreements - countries voluntarily agree to what they're going to sell. Subsidies - gov helps subsidize to keep it going. Buy national - encouraged to product our industry.

Reasons for Delegation

-To enable the manager to get more work done by utilizing the skills and talents of subordinates. -To foster development of subordinates by having them participate in decision making and problem solving.

Benefits of Job Specialization

-Workers can become proficient at a task. -Transfer time between tasks is decreased. -Specialized equipment can be more easily developed. -Employee replacement becomes easier.

Unions Added to Ranks in 2015 but Failed to Gain Market Share

1) Anyone Belong to a Union? Pros? Cons? 2) 2015 - Rate of U.S. union membership _________ (Rose? Fell? Remained steady?) 3) In US in 2015, which industries ADDED members? Which Ones LOST members? 4) As a Manager or Owner, Why should YOU care about union trends? What can YOU do to Make Forming a Union Less Attractive to your Employees? Think!!! 5) What is the "Fight for $15 Campaign?" How could this impact you as an employee/employer? 6) Florida is a Right to Work AND Employment at Will state. 7) How does Employment at Will differ from Termination for Cause? Pros- Collective voice (together you have someone bargaining for you). Cons- you can't fight for what you personally believe in, the union does this on your behalf. 2) Steady, some industries added members, some lost members. 4) If your comp becomes unionized, it is harder for you to do what you want to do. Treat people well. -You can't stop union from coming in. You can't fire everyone. (even in FL). -You have to pay to be in a union and you might be intimidated by your employer for being in one. But if you are in one, you might get more benefits and higher pay than someone who isn't in the union. -The rate of union memberships in the US held steady last year (2015), with slight overall gains in union membership rosters outweighed by the risking ranks of nonunion workers. -Fight for $15 campaign. Hasn't happened. Won't talk about impact of what will happen if it passed since it hasn't happened. -#6 is on test. -Unions collectively added new members in the private and public sectors, including in industries such as leisure, hospitality, retail, education, and health services, while they saw declines in manufacturing, construction and transportation. -The union-funded Fight for $15 campaign that began in New York with fast-food workers has "totally changed the conversation on minimum wage." -Right to work- don't get it confused with employment at will. Right to work at comp that has a union without joining the union. -Employment at Will- Employer has right to let you go as long as decision is not made on discrimination. -Termination for cause generally occurs when an employee makes a severe error in actions or judgment. Means they've done something against the policies (reason).

Family Leave Gaining Momentum in the Workplace

1)Is there federally-mandated paid leave of any type (sick, vacation, maternity) in the US? Other countries? No mandatory paid leave in US. 2) What is the Family and Medical Leave Act (p. 384 of book). -Says employer must allow employee up to 12 weeks of unpaid leave for med emergencies, birth of a child, family member is sick and you have to take care of them. -Employer must have 50+ employees to qualify. As an Employee and an Employer, why do YOU need to know about this law? -We need to know this option is available. Employees need to know this to not break the law. 3) Per article, what are ways employers are helping employees to balance work and family after returning from family leave? Recognize employees who take paid time off. Like Mark Zucherburg (FB). Ships breast milk, more in bottom. -Only about 13% of workers have access to paid family leave, according to Bureau of Labor Statistics data and the US remains one of few countries not to mandate paid leaves for mothers. -To ease workers' qualms about taking long leaves, KKR, Credit Suisse and others are introducing parental-leave coaching to train both parents and managers as to how to handle monthslong leaves. Some firms, such as Credit Suisse are using data analytics to carefully track whether changes to its leave policy have an impact when it comes to retaining and hiring women. Taking Talent provides coaching to firms such as Deutsche Bank, Bank of America and McKinsey & Co. on family leave transitions. Experts also expect to see more workers thinking beyond leave, figuring out ways employees can balance the demand of work and family after they return to the job. Accenture allows new parents to cut back on business-travel during that first year, and private-equity firm KKR & Co. and investment bank Credit Suisse Group AG now pay for infants and child care providers to travel with new parents who have to be on the road. Amazon.com Inc, Microsoft Corp., Accenture, Netflix Inc., Blackstone Group LP, Nestle SA and others have expanded paid leave for new parents and added benefits such as shipping breast milk and paying for family nannies to travel with employees on business trips.

Holden Outerwear (video) 5:27 mins

1)Which of the Four Levels of International Business Activity best Characterizes Holden Outerwear's overseas involvement? a. Domestic (most resources and sales in one country) Ex: Your dry cleaner b. International Business (based in one country, gets meaningful share of resources and or revenues from other countries) Ex: Sears c. Multinational Business (transcends boundaries, Buys, sells, makes world wide) Ex: Coca-Cola d. Global - not committed to one country such as Philip Morris. Answer is b. 2) Does Holden own factories or fabric mills? Why? Where are its garments made? Why? No, made in China. 3) Where is Holden located? Portland Oregon. 4) What are international management challenges mentioned in the video? Probs pants were coming in but pants weren't. They fixed that. Paperwork is challenging, delays, shipping. 5) Although not in the video, per Ch. 5, what could be other international business challenges it faces? Tariffs and taxes, import restrictions, convergence of money, culture. -Economic environment deals with economy of other country you're dealing with.

Whole Foods works to Reduce Costs and Boost Clout with suppliers Article

1. CEO, Mr. Mackey's ________ (Strategic, Tactical, Operational) PLAN gave Store Managers Power to make Decisions. (Decentralization, Ch. 11) 1.Strategic- come from the top. Think of it as S.T.O.P (strategic, tactical, operational plans). 2) What is the new Plan, why is it Needed and what is the Challenge of this new plan? There was a lot of competition, strong competition. Costco now has a lot of organic foods (a whole wall of them). The retailer plans to automate the process of tracking the items on store shelves and submitting restocking orders, as other grocers have. Computers will analyze a store's data to project demand, re-order products and potentially help Whole Foods better understand which stores would benefit from a greater variety of locally produced goods. Panorama began dealing with the national office, which largely has taken over meat buying. It made coordinating national beef promotions easier and may have lowered overall shipping costs for Whole Foods, Mr. Graves said, but now the grocer is slower to react and offer discounts where certain cuts of meat aren't selling well.

LivingSocial Escapes, Urban Escapes 5:25 mins

1. How do Maia and Bram exemplify Entrepreneurs by planning, organizing,operating,and assuming the risk of a business? Yes, they're entrepreneurs and took in the risks. 2. Did Maia: a. Start her business from scratch b. Buy an existing business c. Purchase a franchised. None of the above LIVING SOCIAL ESCAPES, URBAN ESCAPES, -Started from scratch 3. What source of new business financing did Maia initially use: a. personal resources b. strategic alliance c. lenders such as d. venture capital company e. SBA Small Business Administration. -Personal 4k in the beginning for website. 4. How did Maia and Bram finance the company's growth? LIVING SOCIAL ESCAPES, URBAN ESCAPES, How did Maia meet the Basic Strategic Challenge of Choosing an industry? Explain how each of these Distinctive Competencies helped Urban Escapes succeed as a small business venture:- Identify a new niche- Respond quickly to new opportunity - first mover advantage. -Invested in website, etc. -Paid in advanced. -Financed it with future client money. -She likes industry so chose it. -Niche Identified (young people in city want to escape and do outdoorsy and nature stuff on the weekends). -First Mover Advantage, First in this large city to do this.

Modern-Shed Video 3:53 mins.

1. I've read in your BIO's that many of you have set goals. What personal Goal did Scott set for himself to accomplish before he was 25? Go around the world. 2. Scott is an Independent contractor. How does that differ from being an employee? General discussion, material is not in Ch. 7. -Not employee, bills for hrs or sales. Employers don't worry about liability, you're working for them but not with them. Don't take taxes out of paycheck. You have your own liability, no benefits. You can write off a lot on taxes. Higher amount of money per hour. (for us to know, not on test). 3. In the video, what goals did Ryan set for the next 2 - 5 years. -Every 4th structure was going to be dwelling. 4. Were these Short Term, Intermediate or Long term Goals? Intermediate (1-5 years). They said his are 2-5 years. 5. What conditions would be needed in other cities, such As Miami, for the Nanny Shed to be as successful as it is in Seattle? Think about what specific Factors to consider with The demographics of Miami. -Mid-century modern isn't very popular in Miami. They want to change buildings to our style. Figure out land prices here, higher income areas too. Have to have hurricane standards. -Who's going to buy these? -People with enough money to have a nanny. -Duo income. 6. Prior to hiring Scott, Modern Shed had no local Sales Goals? What was the local sales goal Scott set? How did he determine this goal? -2 Nanny sheds a month. Realistic goal, because he analyzed previously sales, local sales. What is going to take to keep us going?

Outsider Kasper Rorsted is Tapped to Lead Adidas Article

1. What Two New Goals Have been Set by Adidas? -The new plan under Mr. Rorsted is to make Adidas cool among young adults and regain market share. As an effort to make Adidas cool, they hired Kanye but failed because no one likes him. Adidas's has moved its global design director from Germany to its U.S. headquarters in Portland, Ore., reconstructed its marketing and design departments, and placed more emphasis on U.S. sports marketing. 2) Which Ch. 5 International Management Challenge Likely Caused Rorsted, while at Henkel, to Replace German Managers in the U.S. with Americans? Henkel is German comp that makes knives. -Socio-cultural. Germans are very strict, rigid. At Henkel, Mr. Rorsted has shaken up the once stodgy company by cutting bureaucracy, shedding 800 noncore brands, overhauling its product assortment and replacing German managers in the U.S. with Americans. Henkel is not more tightly controlled and compact. Its reaction time to market changes, such as a shift to buying laundry detergents online instead of at stores—has gotten much shorter. Their position has become much stronger. 3) What Factors Caused Weak Financial Performance at Adidas in 2014? -Investors were disappointed with (board decisions) performance in North America. -American sales in gold are down. -Currency losses in Russia. 4) Under the Current CEO, Herbert Hainer, how has Adidas performed against Nike and UnderArmour? Which one of a relatively new competitor? -Under Mr. Hainer's leadership, the company had lost ground in North America to its biggest rival, Nike Inc., and newcomer Under Armour Inc. Adidas currently holds the No.3 spot in the U.S. sporting-goods market.

Chain of Command

A clear and distinct line of authority among the positions in an organization. *Unity of Command*- Each person within an organization must have a clear reporting relationship to one and only one boss. *Scalar Principle*- A clear and unbroken line of authority must extend from the bottom to the top of the organization. Notes- -For chain of command remember organization chart. -Unity - means one, each person only has one boss. -Span of control- means the same thing. -Scalar Principle- chain of command, line of authority that can't be broken.

Tall Vs Flat

A tall organization has many layers of management, refer to figure 11.3 on p. 306 of our textbook which shows five layers of management. Starting from the bottom and working up, titles could be: manager, director, vp, senior vp, president. The flat organization in the same figure has three layers of management. Starting from the bottom and working up, titles could be: managers, vice presidents and president. Another important concept is determining the appropriate span of management/control which is how many subordinates can effectively report to a manager. Table 11.1 on the bottom of page 306 is very important to understand. It lists the determining factors, such as competence of supervisor and subordinates (the greater the competence, the wider the span of management meaning more people can report to a supervisor) etc.

Employment at Will is in Florida

A traditional view of the workplace in which an employer can fire an employee for any or no reason. Notes- Florida is an Employment at will state. Employer has right to let you go as long as decision is not made on discrimination. You will see this on employment application. Just cause- means they need a reason. Not applicable in FL. Can prove by patterns (hiring and firing), subpoena interview notes.

Functional Departmentalization

Advantages- -Each department can be staffed by functional-area experts. -Supervision is facilitated in that managers only need be familiar with a narrow set of skills. -Coordination inside each department is easier. Disadvantages- -Decision making becomes slow and bureaucratic. -Employees narrow their focus to their department and lose sight of broader goals and issues. -Accountability and performance are difficult to monitor.

Managing Globalization

Approaches to Internationalization: Exporting and Importing, Licensing, Strategic Alliance and Joint Venture, Direct Investment. *Importing or Exporting* *Advantages*- Small cash outlay, little risk, no adaptation necessary. *Disadvantages*- Tariffs and taxes, high transportation costs, government restrictions. *Licensing*- Use of name Technology, etc. *Advantages*- Increased profitability, extended profitability. *Disadvantages*- Inflexibility, competition. *Strategic Alliances* (two firms cooperate for mutual gain) and *Joint Ventures* (share ownership of new enterprice). *Advantages*- Quick market entry, access to materials and technology. *Disadvantages*- Shared ownership (limits control and profits). *Direct Investment*- Build or buy in another country. *Advantages*- Enhanced control, existing infrastructure. *Disadvantages*- Complexity, greater economic and political risk, greater uncertainty. Notes- Importing or Exporting is the easiest with least amount of obligation. Licensing - established name. License name to outside in other countries. Strategic alliances- two or more firms cooperate to gain mutual gain. Joint- two firms sharing ownership of new enterprise. Direct investment- go to other country and open a new facility. The one you invest more (time, money, etc).

Strategy for Entrepreneurial Organizations

Basic Strategic Challenges- Choosing an industry in which to compete. Emphasizing distinctive competencies. Gaining first mover advantage. Services are the fastest growing segment of small-business enterprise. Notes- -Service doesn't cost a lot of money. -Factoring plant takes a lot of money.

Contingency Planning and Crisis Management

Contingency Planning The determination of alternative courses of action to be taken if an intended plan is unexpectedly disrupted or rendered inappropriate. These plans help managers to cope with uncertainty and change. Crisis Management The set of procedures the organization uses in the event of a disaster or other unexpected calamity. Ongoing planning process- Action point 1- develop plan, considering contingency events. Action point 2- Implement plan and formally identify contingency events. Action point 3- Specify indicators for the contingency events and develop contingency plans for each possible event. Action point 4- Successfully complete plan or contingency plan. Monitor contingency event indicator and implement contingency plan in necessary. Notes- Contingency planning -Plan B, so what if these plans don't workout? Plan B. Crisis Management- Setting into place.

The Nature of Entrepreneurship

Entrepreneurship -The process of planning, organizing, operating, and assuming the risk of a business. -Entrepreneur- Someone who engages in entrepreneurship. Small Business- A business that is privately owned by one individual or a small group of individuals; it has sales and assets that are not large enough to influence its environment. Most U.S. workers work for small businesses. The majority of small businesses are owner operated. Small business is a strong presence in both mature and emerging economies Small businesses have a strong effect on job creation, innovation, and are important to big businesses. Notes- Entrepreneur - One who plans, organizes, operates... not someone who opens business and has someone with it. Not large enough to impact its environment. Small Business- not large enough to impact its environment. Most workers work for small businesses.

Equal Employment Opportunity Commission

Federal agency charged with enforcing Title VII as well as several other employment-related laws.

Title VII of the Civil Rights Act and the five protected classes

Forbids discrimination in all employment decisions based on five protected characteristics - *sex, race, color, religion national origin.* Employers are not required to seek out and hire minorities but they must treat fairly all who apply. Notes- -Title 7, don't need to know year. Know what law is about. -In hiring, in firing, deciding shifts, locations, any that impacts employment can't be based on five protected characteristics. -Need to know *Equal Employment Opportunity Commission. They enforce Title 7.* -EEOC might help you for free. -You don't want to have a EECC suit if you're even working in HR.

Americans with Disabilities Act of 1990 (ADA)

Forbids discrimination on the basis of disabilities and requires employers to provide reasonable accommodations for disabled employees. Notes- -Reasonable accommodation. -Someone is going in for secretary position, they can't water plants because they're in a wheel chair. So would we not consider them for the job or give them a reasonable accommodation? We would give them reasonable accommodation, have someone else water the plants. Building a ramp is also a reasonable accommodation.

Level of International Activity

From lowest to highest = Domestic Business, International Business, Multinational Business, Global Business. -Domestic Business- acquires all of its resources and sells all of its products or services within a single country. -International Business- is based in a single country yet acquires a meaningful share of its resources and/or revenues from other countries. -Multinational Business- transcends national boundaries and buys raw materials, borrows money, and manufactures and sells its products in a world-wide marketplace. Notes- Domestic- gets all resources and sells all its products in their country. International business - based in one country but gets lots of resources and profits in other countries. Multinational business- many nations, buys raw materials, sells, worldwide. (coca cola is a good example). Global business is not on exam.

Product Departmentalization

Grouping activities around products or product groups. *Advantages* -All activities associated with one product are integrated and coordinated. -Speed and effectiveness of decision making are enhanced. -Performance of individual products or product groups can be assessed. *Disadvantages* -Managers may focus on their product to the exclusion of the rest of the organization. -Administrative costs may increase due to each department having its own functional-area experts.

Customer Departmentalization

Grouping activities to respond to and interact with specific customers and customer groups. *Advantage* -Skilled specialists can deal with unique customers orcustomer groups. *Disadvantage* -A large administrative staff is needed to integrate activities of various departments.

IKEA article

Identify "Environmental Challenges of International Management" - Economic Environment (Economic system, natural resources, infrastructure) - Political and Legal Environment (Government stability, property rights, trade incentives, relations, controls) - Cultural Environment (Values, symbols, beliefs, languages, individual behavior) ____________ Ikea has to have 30% of inventory being manufactured in India. Poor infrastructure, unskilled labor force poor roads, outdated tech and red tape which has kept manufacturing at 17%. Lobbying to the prime minister narendra modi didn't work. They have a grace period of a few years. Working hrs and wages have been a prob (i think). But many Indian suppliers make unsafe inventory like with high levels of formaldehyde. India has no binding safety standards for housewares. Unskilled labor force, poor infrastructure, outdated tech and red tape. Ikea wants no child labor, employees to be trained in firefighting and first-aid, as well as depositing their monthly wages in a bank account in a country where nearly half the adult population doesn't have one. India has no binding safety standards for housewares but IKEA wants factory to meet comp's standards. Ikea gave up and moved up previously (or wanted to) but kept on. SEL's towel factory wasn't storing hazardous chemicals properly. Eventually, they shaped up. Ikea had eastern mills build a factory there to ensure that its rugs weren't made with child labor. Along with other things. They had to go door to door to ask people to work for them and it was tough to get women to work for them, they got like 12 women. They had to build a nursery in the plant. People had to open bank accounts. Classes on personal hygiene, like you can't deficate outdoors and spitting in the open. Ikea has gotten more suppliers but still less than 5%. They are hoping to sign 10 more suppliers. It will take more time.

Realistic Job Preview (RJP)

Is considered a successful method to ensure person-job fit. Notes- As someone who might be hiring other people (us the students), we should tell people what the job is really like. Like if we work on weekends, customers yell at your over the phone (at a newspaper place). Tell them the truth so they don't quit on your later when they find out and so that you can get someone who wants the job regardless of these things.

Goals Who Sets Goals? Time Frame

Kinds of Goals- Setting Organizational Goals. By Level- Mission statement, Strategic goals, Tactical goals, Operational goals. By Area- Operations, Marketing, Finance, Production. Time Frame- Long-term goals, intermediate goals, short-term goals, explicit goals, open-ended goals. Who sets goals? All managers. Managerial responsibility for goal setting should correspond to the manager's level in the organization. Time Frames- -Long range (Strategic) plans of 5 or more years. -Intermediate-range (tactical) plans of 1-5 years. -Short-range (operational) action and reaction plans of 1 year or less. Notes- Every level in comp has some kind of goals, even lower level supervisors.

Look for need to for for exam extra stuff

Look for *Need* and *know* and *exam* on powerpoints And REVIEW ALL POWERPOINTS ANYWAYS

Problems in Delegation

Manager- -Reluctant to delegate. -Disorganization prevents planning work in advance. -Subordinate's success threatens superior's advancement. -Lack of trust in the subordinate to do well. Subordinate- -Reluctant to accept delegation for fear of failure. -Perceives no rewards for accepting additional responsibility. -Prefers to avoid any risk and responsibility. Notes- Some managers don't want to delegate because they think the subordinate will do task wrong or because they might do it so well that they might feel it makes them look bad or their position could be at risk. But managers can't do it all.

Narrow Vs. Wide

Narrow vs. wide describes span of management/control, how many employees can effectively report to a manager. Please read Table 11.1 on the bottom of page 306. There is also a PowerPoint slide of this table. Table 11.1 Factors influencing span of management/control: - Degree of interaction (the less required interaction, the WIDER the span) which means that when employees do not need to interact a lot with the manager, then more employees can report to that manager - Physical disperson of subordinates (the greater the dispersion, the NARROWER the span) which means the further apart employees physically are from each other, then less employees can report to a manager. If there are employees in Davie, Key West, Orlando, etc. then less employees can report to a manager than if all employees were in one location. - Similarity of tasks being supervised (the more similar with tasks, the WIDER the span) which means if everyone is doing accounts payable then more people can report to the manager than if some were doing payables, receivables, payroll, etc. etc. There are many more examples in Table 11.1

Age Discrimination in Employment Act

Outlaws discrimination against persons older than 40 years of age.

Management Challenges in a Global Economy

Planning - Understanding of both environmental issues and competitive issues. Organizing- Addressing issues of creating and managing operations on a world-wide scale. Leading- Learning to interact with and motivate persons of different cultural, social, and economics backgrounds. Controlling- Integrating operations across time-zones, cultural factors, and varying communication methods.

Internal Recruiting

Promotion from within: considering current employees as candidates for openings. -Advantage: can build morale and reduce turnover of high-quality employees. -Disadvantage: can create a "ripple effect" of having to successively fill vacated positions. Notes- Internal recruiting- in comp, find someone in comp to promote. Better morale. External - go out of comp to find employees.

Kinds of Organizational Plan and Responsibilities for planning

Remember STOP- Strategic Plans (upper management) -> Tactical Plans (middle management) -> Operational Plans (lower-level managers) Notes- Where an example is given of a plan, which level in organization will be responsible for that plan? Starbucks closed. This was done because there was an incident that Starbucks were racially insensitive. They allowed white customers to use the bathroom without paying anything but not colored customers. So they did sensitive planning. So upper level management shut stores down and provided training. *Responsibilities for planning* Planning Staff- Gather information, coordinate planning activities, and take a broader view than individual managers. -Planning Task Force Created when the organization wants a special circumstance addressed. -Board of Directors Establishes corporate mission and strategy. May engage in strategic planning. -Chief Executive Officer May serve as president or board chair; has a major role in planning and implementing the strategy. Notes- Responsible for planning- All managers, also comps can have planning task forces (big corps).

Family and Medical Leave Act (FMLA)

Requires employers to provide up to 12 weeks of unpaid leave for family and medical emergencies. Notes- -At least 50 employees for comp to qualify. -Unpaid. Some comps voluntarily pay, like coca cola, microsoft, FAU. Usually large organizations can afford to do so.

Equal Pay Act

Requires men and women to be paid the same amount for doing the same jobs; exceptions are permitted for seniority and merit pay. Notes- For Equal pay act- the difference would have to be seniority or merit (someone does better and you can document it, their performance). Then these are acceptable.

External

Sources of External Recruits- Advertising, Campus interviews, Employment agencies, Walk-ins, Executive search firms, union halls, Employee referrals, Walk-ins.

Steps in the Delegation Process

Step 1 - Assigning Responsibility- Manager -> Subordinate Step 2- Granting Authority- Manager -> Subordinate Step 3- Creating Accountability Manager -> Subordinate Notes- 1 question on exam from this chart. -Summer picnic outing, Evenson from class is responsible for picnic. He was assigned responsibility for picnic (step 1). He has been granted authority by the teacher and the teacher tells the whole class he has authority (step 2). After the picnic, the teacher follows up to make sure it was done correctly (step 3).

The Effectiveness of Formal Goal Setting

Strengths (success) -Improved employee motivation. -Enhances communication. -Fosters more objective performance appraisals. -Focuses attention on appropriate goals and plans. -Helps identify managerial talent. -Provides a systematic management philosophy. -Facilitates control of the organization. Weaknesses (failure) -Poor implementation of the goal setting process. -Lack of top-management support for goal setting. -Delegation of the goal-setting process to lower levels. -Overemphasis on quantitative goals. -Too much paperwork and record keeping. -Managerial resistance to goal setting. Notes- Formal goal setting. Give quantifiable goals that are realistic. Not sell more, but sell 3 more with these discounts. -Weaknesses - Too much record keeping, too little time out in the field.

Job Specialization (Division of Labor)

The degree to which the overall task of the organization is broken down and divided into smaller component parts. Notes- -Job specialization is most common, people specialize in one particular aspect. (like building a car, you're the only one who puts the doors on cars, you become an expert but it might be very monotonous (boring). -There are alternatives to job specialization.

Location Departmentalization

The grouping of jobs on the basis of defined geographic sites or areas. *Advantage* -Enables the organization to respond easily to unique customer and environmental characteristics. *Disadvantage* Large administrative staff may be needed to keep track of units in scattered locations. Notes- Advantage of logistics of SE division vs East division. -Need to know.

Span of Control

The number of people reporting to a manager. Narrow Versus Wide Spans

Delegation

The process by which managers assign a portion of their total workload to others.

Barcelona Restaurant Group. 1 q on test. 6:13.

Three Main Activities of Human Resource Management (HRM): 1) ATTRACTING an effective Workforce (Planning, Forecasting, Recruiting and Selecting) 2) DEVELOPING an effective Workforce (Training and Assessing Performance) 3) MAINTAINING an effective Workforce (Compensation, Benefits) Ch. 14, Barcelona Restaurant Group Video Questions _____ 2) Which of the 3 Main HRM Activities does the Video address? They are attracting (recruit and select people with specific traits they want). 3) Step 2 of HRM Activities, Developing an Effective Workforce and Assessing Performance. What are does Barcelona's development and retention practices? Does it Believe you can train an Employee to be Enthusiastic? How do their practices differ from those of Other Companies? He fires people he doesn't like and gets someone else. He doesn't believe you can train someone to be enthusiastic. The 3-step Process Barcelona uses is: 1) INTERVIEW - Is it Short or Long? Why? Per our book, Can Interviews be good or poor Predictors of Job Success? Why? Short, 20 mins, and he does most of the talking to inform potential worker what the restaurant is about and what is expected. 2) "SHOP"= Dine at a Barcelona Restaurant - What Is the Purpose? Give examples of how this method could be used in other hiring situations. He gives them $100 to see what they have to say about the restaurant, write an essay about it. The 3-step Process Barcelona uses is: (Continued) 3) "TRIAL" - Applicant pretends she has been at the restaurant for six months to show abilities by taking charge, Talking to Staff and customers - What are the strengths of this method? Forces them to be a leader and show what they observe.... People's ability to be observant. Can any of these methods be used by you, as someone who may conduct interviews?

Alternatives to Job Specialization

Work Teams -An alternative to job specialization that allows the entire group to design the work system it will use to perform an interrelated set of tasks. Notes- -Job rotation- changing to diff jobs (rotating). -Job enlargement- make job bigger but no extra pay usually. -Job Enrichment- have more decisions to you about your job (over your job). -Don't worry about job characteristics approach. That is a big HR thing. -Work teams - a team works together at a project. Like at Harvey Davidson, they use work teams. Each team has a bike that they work on together. In the team, they have job rotation. The team decides how they're going to do it.