MAN 320F Exam 3
Rational decision making process
1. Define the problem 2. identify decision criteria 3. Weigh the criteria 4. Generate alternative courses of action 5. Evaluate each alternative 6. Compute the optimal decision
Pitfalls of Planning
1. It can impede change and prevent or slow needed adaption 2. Planning can create a false sense of certainty 3. the detachment of planners - they're supposed to focus on the big picture and not concern themselves with the details of implementation or carrying out the project
Benefits of planning
1. Leads to persistence, that is, working hard for long periods 2. direction 3. encourages the development of task strategies 4. The most compelling benefit of planning is that it has been proven to work for both companies and individuals 5. It gives direction to managerial efforts
What not to do when leading change:
1. Not establishing a great enough sense of urgency (unfreezing) 2. Not creating a powerful enough coalition (unfreezing) 3. Lacking a vision for change (change phase) 4. Under Communicating the vision by a factor of ten (change phase) 5. Not removing obstacles to the new vision (change phase) 6. Not systematically planning for and creating short-term wins (change phase) 7. declaring victory too soon (refreezing phase) 8. not anchoring changes in the corporation's culture (refreezing)
How to Make a Plan that Works
1. Set goals 2. develop commitment goals 3. develop effective action plans 4. Track progress 5. Maintain flexibility
Cybernetic process
1. Set standards 2. Measure performance 3. Compare with standards 4. identify deviations 5. Analyze deviations 6. develop and implement program for corrective action
6 parts to encourage creativity:
1. challenging work 2. organizational encouragement 3. supervisory encouragement 4. workgroup encouragement 5. freedom 6. lack of organizational impediments
Dominant design can emerge:
1. if it reaches critical mass 2. if it solves a problem 3. through independent standards and bodies
General Electric workout is a special kind of results-driven change.
TRUE
Management by objectives is a management technique often used by middle managers to develop and carry out _____.
Tactical plans
Management by objectives
a management technique often used to develop and carry out tactical plans 1. Discuss possible goals 2. Collectively select goals that are challenging, attainable, and consistent with the company's overall goals 3. Jointly develop tactical plans that lead to the accomplishment of tactical goals and objectives 4. Meet regularly to review progress toward accomplishment of those goals
Incremental change
a phase in which companies innovate by lowering the cost and improving the functioning and performance of the dominant design.
Tactical plans
a plan created and implemented by middle management that direct behavior, efforts and attention over the next 6 months to 2 years.
Action plans
a plan that lists specific steps, people, resources, and time period needed to attain a goal (how, who, what, when)
Flow
a psychological state of effortlessness, in which you become completely absorbed in what you're doing and time seems to fly; balance between skills and task challenge
Control
a regulatory process of establishing standards to achieve organizational goals, comparing actual performance to the standards, and taking corrective action when necessary to restore performance to those standards.
Rational decision making
a systematic process in which managers define problems, evaluate alternatives and choose optimal solutions
Budgets are
a type of operational plan
Dissolution stage
after failing to make the changes needed to sustain the organization, the company is dissolved through bankruptcy proceedings or by selling assets to pay suppliers, banks, and creditors
Concertive control
are based on beliefs that are shaped and negotiated by a workgroup. Usually arise when companies give workgroups complete autonomy and responsibility for task completion. How concertive control is developed: -Phase 1: group members learn to work and develop values and beliefs that will guide their behavior. Work groups then feel strongly about following them -Phase 2: the emergence and formalization of objective rules to guide and control behavior
Milestones
are formal project review points used to assess progress and performance
Small-group interventions
assessing group functions and helping it work more effectively to reach goals through team building or unit goal setting
Compression approach
assumes that innovation is a predictable (certain environment) process, that incremental innovation can be planned using a series of steps, and that compressing the time it takes to complete those steps can speed up
Experiential approach to innovation
assumes that innovation is occurring within a highly uncertain environment and that the key to fast product innovation is to use intuition, flexible options, and hands-on experience to reduce uncertainty and accelerate learning and understanding
Technology cycle
begins with the birth of a new technology and ends when that technology reaches its limits and dies as it is replaced by a newer, substantially better technology (ex: the Ford replaced horse & carriage)
5 stages of organizational decline
blinded, inaction, faulty action, crisis stage and dissolution
Large system interventions
change the character and performance of organization, business unit or department through sociotechnical systems / interventions designed to improve how well employees use and adjust to tech in their org
Planning
choosing a goal and developing a method or strategy to achieve that goal
final step in benchmarking
collect data to determine other companies' performance standards
regulation cost
cost associated with implementing or maintaining control
Technological substitution occurs when:
customers purchase new products to replace older technologies.
Operational plans
day-to-day plans, developed and implemented by lower-level managers for producing or delivering the organization's products or services over a thirty-day to six-month period
Supplier involvement
delegating some of the pre-planned steps in innovation process to suppliers reduces the amount of work internal teams do and shortens development time.
5 Aspects to Experiential approach
design iterations, testing, milestones, multifunctional teams, and powerful leaders
A-type(affective) conflict
disagreement that focuses on individuals or personal issues
C-type (cognitive) conflict
disagreement that focuses on problem- and issue- related differences of opinion
_____ is a change based on incremental improvements to a dominant technological design such that the improved technology is fully backward compatible with the older technology.
Generational change
Which of the following best defines an incremental change?
It is a phase in which companies innovate by lowering the cost and improving the functioning and performance of a dominant design
Results-driven change
It is the change created quickly by focusing on the measurement and improvement of outcomes.
feedforward control
It provides information about performance deficiencies by monitoring inputs rather than outputs
Which of the following statements is true of the experiential approach to innovation?
It uses intuition and hands-on experience to reduce uncertainty and accelerate learning
_____ are responsible for developing operational plans.
Lower-level managers
_____ are responsible for the creation of tactical plans.
Middle managers
true statement about self-control
does not result in anarchy
Things to manage resistance to change:
education and communication, participation, negotiation, top-management support, and coercion
The most popular approach to increase goal commitment is to:
encourage employee participation while setting goals
Balance Scorecard
encourages managers to look beyond such traditional financial measures to four different perspectives on company performance. Financial, Customer, Internal/Quality, Sustainability
Evaluation apprehension
fear of what others will think of your ideas
First step of benchmarking
figuring out what to benchmark
Resistance forces
forces that support the existing conditions in organizations
Unfreezing
getting people affected by the change to believe that the change is needed. First step in Lewin's process, the step of change process when surveys would be distributed
Flat Slope
increased efforts will only result in small tech improvements
Technological discontinuity
innovation streams begin with this. A scientific advance or a unique combination of existing technologies creates a significant breakthrough in performance or function
Person-focused interventions
intended to increase interpersonal effectiveness by helping people become aware of their attitudes and to acquire new skills and knowledge.
Output control
measures the results of the managers and workers; gives managers and workers the freedom to behave as they see fit as long as they accomplish prespecified, measurable results. Often coupled with rewards and incentives
Advantage of balance scorecard
minimizes changes of suboptimization
Generational change
most incremental innovation is based on generational change which occurs when incremental improvements are made to a dominant technological design such that the improved version of the technology is fully backward compatible with the older version
A local plumbing company installed global positioning satellite (GPS) tracking devices in all its trucks to ensure that employees were going on service calls and not running personal errands. This is an example of _____.
objective control
Technological lockout
occurs when a new dominant design (that is, a significantly better technology) prevents a company from competitively selling its products or makes it difficult to do so
Organizational decline
occurs when companies don't anticipate, recognize, neutralize, or adapt to the internal or external pressures that threaten their survival
Technological substitution
occurs when customers purchase new technologies to replace older technologies
Work group encouragement
occurs when group members have diverse experience, education, and backgrounds, and the group fosters mutual openness to ideas; positive, constructive challenge to ideas; and shared commitment to ideas.
Organizational encouragement
occurs when management encourages risk taking and new ideas, supports and fairly evaluates new ideas, rewards and recognizes creativity, and encourages the sharing of new ideas throughout different parts of the company
Suboptimize
occurs when performance improves in one area at the expense of decreased performance in others (ex: firing employees could decrease the quality of customer service)
Supervisory encouragement
occurs when supervisors provide clear goals, encourage open interaction with subordinates, and actively support development teams' work and ideas.
Purpose statement
often referred to as the organizational mission or vision, is a statement of a company's purpose or reason for existing.
Resistance to change
opposition to change resulting from self-interest, misunderstanding and mistrust and general intolerance for change
kinds of encouragement
organizational, supervisory, workgroup
Innovation streams
patterns of innovation over time that can create sustainable competitive advantage
The compression approach to innovation management is used in:
periods of incremental change.
5 Aspects to Compression approach
planning, supplier involvement, shortening the time of individual steps, overlapping steps, and multifunctional teams
Standing plans
plans used repeatedly to handle frequently recurring events, saves managers time (ex: policies, procedures, rules & regulations)
Powerful leaders
provide the vision, discipline, and motivation to keep the innovation process focused, on time, and on target
Strategic objective
refers to a more specific goal that unifies company-wide efforts, stretches and challenges the organization, and possesses a finish line and a time frame. Once one has been accomplished, a new one should be chosen
Economic Value Added (EVA)
requires managers to outline a budget from scratch each year; the amount by which company profits (rev-exp-taxes) exceed the cost of capital in a given year. How do we look to shareholders? -It's important bc it shows if a business is actually paying for itself -Because EVA can easily be determined by subsets of the company, it makes managers and workers at different levels pay attention to their segment of the business -Doesn't tell you what should/shouldn't be done to improve performance -The amount of profits that exceed the cost of capital in a given year
the most specific type of standing plans
rules & regulations
Reasons for resistance to change
self-interest, misunderstanding and mistrust, low tolerance for change
Steep slope
small efforts will result in large improvement
A laptop manufacturer has created a set of methods to deal with specific technical issues raised by customers. In this scenario, the set of method represents a _____.
standing plan
Refreezing
supporting and reinforcing the new change so that they stick
A study conducted by the R&D team of the company revealed that the microprocessors' growth rate is initially slow, then becomes rapid, and eventually becomes slow again toward the end of the four-year cycle. In the context of technology cycles, this scenario best illustrates _____.
the S-curve pattern of innovation
Planning for incremental innovation
the goal is to squeeze or compress development time as much as possible, and the general strategy is to create a series of planned steps to accomplish that goal. Reduces misunderstandings and improves coordination
Options-based planning
maintaining planning flexibility by making small, simultaneous investments in many alternative plans (opposite of traditional planning- leaving commitments open by maintaining slack resources)
Strategic plans
make it clear how the company will serve customers and position itself against competitors in the next two to five years
Inaction stage
management may recognize the need to change but still take no action
Faulty action stage
management will announce belt-tightening plans designed to cut costs, increase efficiency, and restore profits instead of recognizing need for fundamental change
Standards
may have to be changed if it does not help in achieving company goals
Nominal Group Technique (NGT)
A decision making method that begins and ends by having group members quietly write down and evaluate ideas to be shared with the group (decreases a-type conflict)
Delphi Technique
A decision making method where members of a panel of experts respond to the questions and to each other until reaching agreement on an issue
Which of the following is true of the S-curve pattern of innovation of a product?
A flat slope indicates that increased effort brings only small improvements in technological performance
Concurrent control
Addresses the problems inherent in feedback control by gathering information about performance deficiencies as the occur; improvement over feedback as it attempts to eliminate or shorten the delay between performance and feedback (ex: Microsoft getting real-time feedback from software developers to address bug fixes as they come up)
Which of the following statements is true of resistance to change?
It decreases when change efforts receive significant managerial support
_____ is the process used to get workers and managers to change their behaviors and work practices.
Change intervention
statements is true of planning?
It intensifies the effort put in by managers and employees
Which of the following is the first step in the process of management by objectives?
Discussing possible goals
Which of the following is a difference between experiential and compression approaches to innovation?
Experiential approach is used to establish a new dominant design, whereas compression approach is used to improve the function of an existing dominant design.
3 strategies for waste prevention/reduction
Good housekeeping, Material/product substitution, Process modification
Controlling Quality
Quality is typically defined and measured in three ways: excellence, value, and conformance to expectations
problem
a gap between a desired state and an existing state
General Electric workout
a 3 day meeting in which managers and employees from different levels and parts of the company quickly generate and act on solutions to specific business problems (must shut down or say yes in a matter of minutes; nobody at the company can overrule the decisions)
Normative control
a company's widely shared values and beliefs guide workers' behavior and decisions (ex: JP Morgan designates 300 executives as cultural ambassadors who focus on standards; establishes that scandals and compliance concerns affect everyone in the company). Normative controls created by: -Screening potential hires -Managers and employees learn what they should and should not do by observing experienced employees and by listening to the stories they tell about the company
Slack resources
a cushion of resources, such as extra time, people, money, or production capacity, that can be used to address and adapt to unanticipated changes, problems, or opportunities.
Brainstorming
a decision making method in which group members build on each other's ideas to generate as many alternative solutions as possible
Dialectical inquiry
a decision-making method in which decision makers state the assumptions of a proposed solution (a thesis) and generate a solution that is the opposite (antithesis) of that solution
Production blocking
a disadvantage of face to face brainstorming in which a group member must wait to share an idea because the other group member is presenting an idea
Coercion
a formal power and authority to force others to change
Product prototype
a full-scale working model that is being tested for design, function, and reliability
Design iteration
is a cycle of repetition in which a company tests a prototype of a new product or service, improves on the design, and then builds and tests the improved product or service prototype
Organizational development
is a philosophy and collection of planned change interventions designed to improve an organization's long-term health and performance
Testing
is a systematic comparison of different product designs or design iterations
Crisis stage
is likely to occur unless the company completely reorganizes the way it does business. At this point, however, companies typically lack the resources to fully change how they run their businesses
Behavior control
is regulating behaviors and actions that workers perform on the job. The basic assumption of behavior control is that if you do the right things (that is, the right behaviors) every day, then those things should lead to goal achievement
Bureaucratic control
is top-down control, in which managers try to influence employee behavior by rewarding or punishing employees for compliance or noncompliance with organizational policies, rules, and procedures
A drawback of planning is that:
it causes detachment, which leads planners to plan for things they do not understand
Blinded stage
key managers fail to recognize the internal or external changes that will harm their organizations
Change forces
lead to differences in the form of quality, or condition of the organization over time
standards can be determined by:
listening to customers' comments and complaints
Change agent
the person formally in charge of guiding a change effort
Decision making
the process of choosing a solution from available alternatives
Organizational innovation
the successful implementation of creative ideas
Objective control
the use of observable measures of employee behavior or output to assess performance and influence behavior
Discontinuous change
this is followed by technological discontinuity. Characterized by technological substitution and design competition.
Levels of sustainability
waste prevention and reduction, recycle & reuse, waste treatment, waste disposal
Creative work environments
where workers perceive that creative thoughts and ideas are welcomed and valued
Regulation costs
whether the cost and unintended consequences of control exceeds the benefits
Multi-functional teams
work teams composed of people from different departments
Change intervention
workers and managers change their behavior and work practices
