Management 300 Exam 2 Chapters 5-9

application form

A form that gives a company basic information about you.

small batch production

A type of manufacturing technology that involves the production of goods in batches of one or a few products designed to customer specification.

plan operations

Define operational goals and plans Select measures and targets Set stretch goals Crisis planning

When determining business-level strategy, managers consider what proportion of the firm's portfolio of businesses should be in different industries.

False

Trend management is looking at trends & discontinuities & imagining possible alternative futures.

False, this is the definition of scenario-building

The dog, according to the BCG matrix, is a poor performer.

True

The framework in which the organization defines how tasks are divided is called organizational structure.

True

The functional structure is best for internal efficiency goals in a stable environment.

True

The pure functional structure is important for achieving efficiency goals in stable environment.

True

To be effective, the amount of centralization or decentralization should fit the firm's strategy.

True

Uncertainty is when the goal is clear, but there is no clear solution to the problem.

True

Wage and salary surveys show what other organizations pay.

True

You can hire competitive intelligence professionals to scan the external environment for research.

True

nondirective interview

Type of interview in which interviewer asks open questions and provides general direction but allows applicant to guide process.

decision styles

differences among people with respect to how they perceive problems and make choices

Which decision style is used by people who prefer simple, clear-cut solutions to problems?

directive

work specialization

division of labor, degree to which organizational tasks are subdivided into individual jobs

Strategic goals/plans

done by senior management, adopted by the whole organization

Rightsizing

downsizing

responsibility

duty to perform the task or activity as assigned

unity of command

each employee is held accountable to only one supervisor

Inclusion

employees feel like esteemed member of a group that their uniqueness is highly appreciative

Affirmative Action

employees take positive steps to guarantee equal employment opportunities for people within protected groups

contingent workers

employees that include part-time workers, temporary workers, seasonal workers, independent contractors, interns, and co-op students

changing

intervention, agents teach people new behaviors and skills to guide them in using them in the workplace

coalition management

involved building an alliance of people who support a manager's goals and can influence other people to accept and work toward them. three key steps: 1. talk to customers and other managers 2. address conflicts 3. break down barriers and promote cross-silo cooperation

continuous process production

involved mechanism of the entire workflow and nonstop production

collaboration

joint effort between people from two or more departments to produce outcomes that meet a common goal or shared purpose and that are typically greater than what any of the individuals or departments could achieve working alone

Justifying past decisions

justify past decisions even if those decisions are no longer valid. When managers continue to pour money into a failing project, hoping to turn things around

job specification

knowledge, skills, education, physical abilities, and other characteristics needed to perform a job adequately.

question marks

low in market share high in business growth rate new ventures, risky- a few become stars, others are divested

dogs

low in market share low in business growth rate no investment, keep if some profit, consider divestment, only small share of a slow-growth market

execute the plan

management by objectives performance dashboards single use plans decentralized responsibility

diagnosis

managers analyze underlying casual factors associated with the decision situation

uncertainty

managers know which goals they wish to achieve, but information about alternatives and future events is incomplete

scenario building

managers look at trends and discontinuities and imagine possible alternative futures to build a framework within which unexpected future events can be managed

analytical style

managers prefer complex solutions based on a lot of data

opportunity

managers see potential organizational accomplishments that exceed current goals

classical model

managers use logic and full information to arrive at a decision that is in the organization's best interests

compensation

monetary payments and all non-monetary goods or benefits used to reward employees

focused differentiation

narrow and distinct -uses characteristics of differentiation strategy directed at particular target customer -values flexibility and customer intimacy -pushes empowerment to employees with customer contact

focused cost leadership

narrow and low cost -uses characteristics of cost leadership strategy directed at particular target customer -frequent detailed control reports -measures cost of providing product or service and maintaining customer loyalty

staff authority

narrower and includes the right to advise, recommend, and counsel in the staff specialists' area of expertise is a communication relationship

span of management

number of employees reporting to a supervisor

strategic goals

official goals, broad statements describing where the organization wants to be in the future, pertain to the organization as a whole

Crowdsourcing

open innovation approach, ideas from around the world and let's thousands of people participate in innovation process.

open innovation

opening up the search for new ideas beyond the organization's boundaries and allowing innovations to easily transfer inward and outward

problem

organizational accomplishments have failed to meet established goals

BCG matrix

organizes businesses along two dimensions - business growth rate and market share

top leader

oversees both the product and functional chains of command, is responsible for the entire matrix

Refreezing

people have incorporated new values, attitudes, and behaviors into their everyday work and the changes become institutionalized in the culture

bounded rationality

people have the time and cognitive ability to process only a limited amount of information on which to base decisions

line authority

people in management positions have the formal authority to direct and control immediate subordinates

accountability

people with authority and responsibility are subject to reporting and justifying task outcomes to those above them in the chain of command the mechanism through which authority and responsibility are brought to alignment

Behavorially Anchored Rating Scale (BARS)

performance evaluation technique that relates an employee's performance to specific job-related incidents.

project manager

person responsible for coordinating activities of several departments for the completion of a specific project

business growth rate

pertains to how rapidly the entire industry is increasing

strategy

plan of action that describes resource allocation and activities for dealing with the environment, achieving a competitive advantage, and attaining the organization's goals

porter's competitive strategies

popular model for formulating business-level strategy

crisis planning

prevention and preparation

job analysis

process of gathering and interpreting info about the essential duties, tasks, and responsibilities of the job

matrix boss

product or functional boss, who is responsible for one side of the matrix

new-venture fund

provides financial resources from which individuals or teams can draw to develop new ideas, products, or businesses

stretch goals

reasonable yet highly ambitious and compelling goals that energize people and inspire excellence

Significant company-wide change revision of its processes (more horizontal coordination) is called...

reengineering

Queen Bee Syndrome

refers to a female boss who not only has no interest in fostering the careers of other women but might even actively undermine them

technical complexity

refers to the degree to which complex machinery is involved in the production process to the exclusion of people

organizing

refers to the deployment of organizational resources to achieve strategic goals

reengineering

refers to the radical redesign of business processes to achieve dramatic improvements in cost, quality, service and speed

strategic management

refers to the set of decision and actions used to formulate and execute strategies that will provide a competitively superior fit between the organization and its environment so as to achieve organizational goals

competitive advantage

refers to what sets the organization apart from others and provides it with a distinctive edge for meeting customer or client needs in the marketplace

tactical goals/plans

responsibility of middle managers (major divisions, functions)

sterotype

rigid, exaggerated, irrational belief associated with a particular group of people

structured interview

set of standardized questions that are asked of every applicant so that comparisons can be made easily

organizational development (OD)

set of techniques for implementing planned change to make people and organizations more effective

horizontal linkage model

several departments, such as marketing, research, and manufacturing, work closely together to develop new products

wage and salary surveys

show what other organizations pay incumbents in jobs that match a sample of key jobs selected by the organization

employer brand

similar to a product brand except that it promotes the organization as a great place to work, rather than promoting a specific product or service

Brainstorming

uses face to face group to spontaneously suggest a broad range of alternatives for making a decision.

360-degree feedback

uses multiple raters, including self-rating, to appraise employee performance and guide development

Implementation

using managerial, administrative, and persuasive abilities to translate the chosen alternative into action

social learning

using social media tools to network and learn informally

halo effect

when manager gives employee the same rating on all dimensions of job, even if performance

Overconfidence

when people overestimate their ability to predict uncertain outcomes

risk propensity

willingness to undertake risk with the opportunity of gaining an increased payoff

fundamental characteristics of vertical organization structure

work specialization chain of command span of management centralization and decentralization

Organizational Development Managers help with mergers/acquisitions, organizational decline or revitalization, and conflict management.

True

Organizational change refers to the adoption of a new idea or behavior by an organization.

True

disruptive innovation

innovations in products, services, or processes that radically change competition in an industry

Team Advantages and Disadvantages

-breaks down barriers across departments -improved coordination and cooperation -compromise -adapt more quickly to customer requests and environmental changes and speeds decision making because decisions need to go to the top of the hierarchy for approval -morale boost -conflicts and dual loyalties -cross functional team may make different work demands on members than do their department managers -large amount of time devoted to meetings -too much decentralization

Matrix Advantages and Disadvantages

-can be highly effective in a complex, rapidly changing environment in which the organization needs to be flexible, innovative, and adaptable -conflict and frequent meetings generated by the matrix allow new issues to be raises and resolved -efficient use of HR -confusion and frustration caused by dual chain of command -matrix bosses and two-boss employees have difficult with the dual reporting relationship -high level of conflict because it pits divisional against functional goals -rivalry between the two sides of the matrix can be exceedingly difficult for two-boss employees to manage -time lost to meetings and discussions devoted to resolving this conflict

matrix approach

-combines both functional and divisional structures -improves horizontal coordination and information sharing -dual lines of authority -the vertical structure provides traditional control within functional departments; the horizontal structure provides coordination across departments

translate the plan

-define tactical plans and objectives -develop strategy map -define contingency plans and scenarios -identify intelligence teams

virtual network advantages and disadvantages

-flexibility and competitiveness on a global scale -can draw on resources and expertise worldwide to achieve the best quality and price and can sell its products and services worldwide -can continually redefine itself to fit new product and market -little supervision required -lack of hands on control -must rely on contracts, coordination, negotiation and electronic linkages higher uncertainty and greater demands on managers for defining shared goals, managing relationships, keeping people focused and motivated -employee loyalty can weaken

limitations of planning

-goals and plans can create a false sense of certainty -goals and plans may cause rigidity in a turbulent environment -goals and plans can get in the way of intuition and creativity

benefits of planning

-goals and plans provide a source of motivation and commitment -goals and plans guide resource allocation -goals and plans are a guide to action -goals and plans set a standard of performance

Divisional advantages/disadvantages

-more flexible and responsive to change -concern for customers' needs is high -cross-department coordination is better, better coordination exists within divisions -coordination across divisions is poor -problems can occur when autonomous divisions go in opposite directions -duplication of resources and the high cost of running separate divisions -loss of efficiency and economy of scale -lack of technical specialization, expertise and training due to the small size of departments

Organizational planning process

1. develop the plan 2. translate the plan 3. plan operations 4. execute the plan 5. monitor and learn

people change

A change in the attitudes and behaviors of a few employees.

after-action review

A disciplined procedure whereby managers review the results of decisions to evaluate what worked, what didn't, and how to do things better.

matching model

A human resources approach in which the organization and the individual attempt to match each other's needs, interests, and values.

Sterotyping

A performance evaluation error that occurs when a manager places an employee into a class or category based on one or a few traits or characteristics.

employment tests

Assesses candidates on various factors considered important for the job to be performed and include cognitive ability tests, physical ability tests, and personality tests

Discrimination

Behaving differently, usually unfairly, toward the members of a group.

The bias in when looking only at the previous year's sales to estimate sales for the coming year is called...

Being influenced by initial impressions

Administrative Model

Bounded rationality and satisficing. Describes how managers make decisions in situations characterized by uncertainty and ambiguity.

Which of the following factors is NOT associated with larger span of control? A-Work performed by subordinates is routine and stable. B-Subordinates perform similar work tasks. C-Subordinates are located at various locations. D-Rules and procedures defining task activities are available.

C-Subordinates are located at various locations.

selection

Choosing from among qualified applicants to hire into an organization

reverse innovation

Creating innovative, low-cost products for emerging markets and then quickly and inexpensively repackaging them for sale in developed countries.

Collaboration refers to the managerial task of adjusting among different individuals and departments.

False

Cost leadership is strategy seeking to distinguish its materials from that of competitors.

False

Filling two vacancies in a department is a nonprogrammed decision

False

Front-line managers have the final responsibility for strategic planning.

False

In a job interview, this question is legal: "Have you ever been injured on the job and filed for workers' compensation?"

False

In the strategic approach to human resource management, organizations use screening model when they are trying to find the right people.

False

Lack of trust is perhaps the biggest obstacle to organizational change.

False

Making a choice is the most significant part of the decision-making process.

False

Most organizations that cut benefits during the recent recession plan to restore them.

False

Organizing defines what to do while strategy defines how to do it.

False

People change starts with training everyone in the organization.

False

Reengineering means preserving the past by establishing the sequence of activities by how work was done.

False

Restraining forces are problems/opportunities that provide motivation for change.

False

Solicitation with the promise of reward is the highest level of sexual harassment.

False

relational coordination

Frequent horizontal coordination and communication carried out through ongoing relationships of shared goals, shared knowledge, and mutual respect.

This structure can result in poor communication across departments & decisions can get backed up at the top of organization.

Functional

Focusing manager and employee efforts on activities goal attainment is a benefit of...

Management by objectives

conceptual style

Managers like a broad amount of information

managing diversity

Managing a culturally diverse workforce by recognizing the characteristics common to specific groups of employees while dealing with such employees as individuals and supporting, nurturing, and utilizing their differences to the organization's advantage.

team building

OD intervention that enhances cohesiveness by helping groups of people learn to work together as a team

directive style

People who prefer simple, clear-cut solutions to problems

_____ departments include all of those that provide special skills in support of _____ departments.

Staff; line

performance appraisal

The process of observing and evaluating an employee's performance, recording the assessment, and providing feedback.

A person who sees the need for and champions productive change is called an idea champion.

True

Across different situations, the most effective managers change their decision style.

True

Framework in which the org defines how task, resource, & coordination is organizational structure.

True

If you group departments w/common skills & activities, it's called vertical functional approach.

True

Perpetuating the status quo

When managers base decisions on what has worked in the past and fail to explore new options

plan

a blueprint for goal achievement and specifies the necessary resource allocations, schedules, tasks, and other actions

technology change

a change in the organization's production process - how the organization works

product change

a change in the organization's products or services

decision

a choice made from available alternatives

point-counterpoint

a group decision-making technique that breaks people into subgroups and assigns them to express competing points of view regarding the decision

culture change

a major shift in the norms, values, attitudes, and mind-set of the entire organization

devil's advocate

a person who is assigned the role of challenging the assumptions and assertions made by the group to prevent premature consensus

Realistic Job Preview (RJP)

a preview of a job that provides both positive and negative information about the job and the company

job evaluation

a process that determines the worth of each job in a company by evaluating the market value of the knowledge, skills, and requirements needed to perform it

sterotype threat

a self-confirming concern that one will be evaluated based on a negative sterotype

programmed decision

a simple, routine matter for which a manager has an established decision rule

certainty

a situation in which a manager can make accurate decisions because all outcomes are known

new-venture team

a unit separate from the mainstream organization that is responsible for initiating and developing innovations

diversity of perspective

achieved when a manager creates a heterogeneous team made up of individuals with diverse backgrounds and skill sets

vertical functional

activities are grouped together by common function from the bottom to the top of the organization groups positions into departments based on similar skills, expertise, work activities and resource use- HR, accounting, engineering

recruiting

activities or practices that define the desired characteristics of applicants for specific jobs

diversity

all the ways in which employees differ

large-group intervention

an OD approach that brings together people from different parts of the organization to discuss problems or opportunities and plan for change

corporate university

an in-house training and development facility that offers broad-based learning opportunities for employees

idea incubator

an organizational program that provides a safe harbor where employees can generate and develop ideas without interference from company bureaucracy or politics

characteristics of effective goals

are specific and measurable, have a defined time period, cover key result areas, are challenging but realistic, are linked to rewards

acceptance theory of authority

argues that a manager has authority only if the subordinated chose to accept his or her commands

internship

arrangement whereby an intern exchanges services for the opportunity to gain work experience and see if particular career is appealing

intuition

aspect of administrative decision making that refers to quick comprehension of a decision based on past experience but without conscious thought.

Key performance indicators (KPIs)

assess what is important to the organization and how well the organization is progressing toward attaining its strategic goal

Unfreezing

aware of problems and the need for change

Ethnocentrism

belief in the superiority of one's own ethnic group

electronic brainstorming

brings people together in an interactive group over a computer network, rather than meeting face to face

Differentiation

broad and distinct -acts in a flexible, loosely knit way, strong coordination among departments -strong capability in basic research -creative flair, thinks "out of the box" -strong marketing abilities -rewards marketing abilities -rewards employee innovation -corporate reputation for quality or technological leadership

cost leadership

broad and has low cost -strong central authority; tight cost controls -maintains standard operating procedures -easy-to-use manufacturing technologies -highly efficient procurement and distribution systems -close supervision; finite employee empowerment

mission statement

broadly stated definition of purpose that distinguishes the organization from others of a similar type

acqui-hiring

buying an early-stage start-up in order to obtain the creative talent

Innovation by acquisition

buying start-up companies to get innovative products and services, and usually the talent that created them

exit interview

departing employees to determine reasons for their departure and learn about potential problems in the organization

Pluralism

describes an environment the organization accommodates several subcultures, including employees who would feel isolated and ignored

Goal

desired future circumstance or condition that the organization attempts to realize

planning

determining the organization's goals and defining the means for achieving them

SWOT analysis

careful examination of strength, weaknesses, opportunities and threats that affect organizational performance

chain of command

chain of command is an unbroken line of authority that links all employees in an organization and shows who reports to whom

opportunities

characteristics of the external environment that have the potential to help the organization achieve or exceed its strategic goals

threats

characteristics of the external environment that may prevent the organization from achieving its strategic goals

organization chart

characteristics or vertical structure are portrayed in the organization chart, which is the visual representation of an organization's structure

flat structure

characterized by an overall broad span of management and relatively few hierarchical levels

tall structure

characterized by an overall narrow span of management and a relatively larger number of hierarchical levels

service technology

characterized by intangible outputs and direct contact between employees and customers

mass production

characterized by long production runs to manufacture a large volume of products with the same specifications

satisficing

choosing the first alternative that satisfies minimal decision criteria, regardless of whether better solutions are presumed to exist.

risk

clear-cut goals and good info is available, future outcomes with each alternative are subject to chance

Quasirationality

combining intuitive and analytical thought

escalating commitment

continuing to invest time and money in a decision despite evidence that is failing

One of the problems is marketing peeps never communicate with production people. This is poor...

coordination

nonprogrammed decision

crafts a unique solution to a new and unstructured problem

exploration

creativity, bottom-up approach internal contests idea incubators

cross-functional team

cross-functional team is composed of employees from about the same hierarchical level, but from different areas of expertise

monoculture

culture accepts only one way of doing things and one set of values and beliefs

centralization

decision authority is located near the top of the organization

decentralization

decision authority is pushed downward to lower organization levels

behavorial style

deep concern for others

develop the plan

define mission, vision set goals

strategic plans

define the action steps by which the company intends to attain strategic goals

organization structure

defined as the framework in which the organization defines how tasks are divided, resources are deployed, and departments are coordinated

normative

defines how a manager should make logical decisions and provides guidelines for reaching an ideal outcome

market share

defines whether a business unit has a larger or smaller share than competitors

the heart of strategy is to...

deliver value to customers

synergy

exists when the organization's parts interact to produce a joint effect that is greater than the sum of the parts acting alone

on the job training

experienced employee is asked to teach a new employee how to perform job duties

outsourcing

farming out certain activities

management by means

focuses people on the methods and processes used to attain results, rather than on the results themselves

authority

formal and legitimate right of a manger to make decisions, issue orders, and allocate resources to achieve organizationally desired outcomes -is vested in organizational positions, not people -flows down the vertical hierarchy -is accepted by subordinates

evidence based decision making

founded on a commitment to examining potential biases, seeking and examining evidence with rigor, and making informed and intelligent decisions based on the best available facts and evidence

Seeing what you want to see

frequently looking for info that supports their instinct or point of view and avoid into that contradicts it

team approach

gives managers a way to delegate authority, push responsibility to lower levels, and be more flexible and responsive in a complex and competitive global environment. entire organization is made up of horizontal teams that coordinate their work and work directly with customers to accomplish the organization's goals

bottom-up approach

giving everyone a month off from their regular duties to come up with creative ideas for new products and services

Being influenced by initial impressions

giving too much weight to the past can lead to poor forecasts and misguided decisions

Goal vs plan

goals specify future ends; plans specify today's means

Ambiguity

goals/problems are unclear, alternatives are difficult to define, and info about outcomes is unavailable

divisional structure

groups employees and departments based on similar organizational output, such that each division has a mix of functional skills and tasks. Decentralized form, separate divisions can be organized with responsibility for individual products, services, product groups, major projects or programs, divisions, businesses or profit centers.

stars

high in market share high in business growth rate rapid growth and expansion

cash cows

high in market share low in business growth rate exists in a mature, slow growth industry but is a dominant business in the industry, positive cash flow

Being influenced by emotions

higher performing traders- effective regulation of emotions was a characteristic lower performing traders- less effective in managing and modulating their emotional responses

monitor and learn

hold planning reviews hold operational reviews

cooperation

horizontal coordination mechanisms customers partners open innovation

descriptive

how managers actually make decisions, rather than how they should make decisions

innovation roles

idea champions new venture teams skunkworks new venture fund

contingency planning

identifies important factors in the environment and defines a range of alternative responses to be taken in the case of emergencies, setbacks, or unexpected conditions

operational plans/plans

identify the specific procedures or processes needed at lower levels, frontline managers and supervisors develop operational plans that focus on specific tasks and processes and that help meet tactical and strategic goals.

pay for performance

incentive pay, a portion of compensation to employee effort and performance

ambidextrous approach

incorporating structures and processes that are appropriate for both the creative impulse and the systematic implementation of innovations

coalition

informal alliance among managers who support a specific goal or solution

Skunkworks

informal, autonomous, secretive groups that focus on breakthrough ideas

core competence

something that the organization does particularly well in comparison to others

strategy formulation

stage of strategic management that includes the planning and decision making that lead to the establishment of the organization's goals and a specific strategic plan

strategy execution

stage of strategic management that involves the use of managerial and organizational tools to direct resources toward achieving strategic outcomes

job description

summary of specific tasks and responsibilities of the job

survey feedback

survey employees to gather opinions about corporate values, leadership, participation. Meet in small groups to share results and brainstorm solutions to problems.

management by objectives

system whereby managers and employees define goals for every department, project, and person and use them to monitor subsequent performance. 1. set goals 2. develop action plans 3. review progress and take corrective action 4. appraise performance

elements of competitive advantage

target customers exploit core competence create value achieve synergy

task force

temporary team or committee formed to solve a specific short-term problem involving several departments

group think

tendency of people in groups to suppress contrary opinions in a desire for harmony

Ethnorelativism

the belief that groups and subcultures are inherently equal

panel interview

the candidate meets with several interviewers who take turns asking questions

Human Resource Management (HRM)

the design and application of formal systems to ensure the effective and efficient use of human talent to accomplish organizational goals

human capital

the economic value of the combined knowledge, experience, skills, and capabilities of employees

virtual network structure

the firm subcontracts most of its major functions to separate companies and coordinates their activities from a small organization at headquarters

human resource planning

the forecasting of HR needs and the projected matching of individuals with expected vacancies

creativity

the generation of novel ideas that may meet perceived needs or respond to opportunities for the organization

glass ceiling

the invisible barrier that separates women and minorities from top management positions

coordination

the managerial task of adjusting and synchronizing the diverse activities among different individuals and departments

mission

the organization's reason for existence. The mission describes the organizations' values, aspirations and reason for being.

prejudice

the tendency to view people who are different as being deficient

two-boss employees

those who report to two supervisors must work with senior managers to reach joint decisions

decentralized planning

top executives of planning experts work with managers in major divisions or departments to develop their own goals and plans

tactical plans

typically have shorter time horizon