MANAGEMENT EXAM 1
This act, passed in 2002, improve and maintain investor confidence. The law requires companies to have more independent board directors (not just company insiders) to adhere strictly to accounting rules, and have senior managers personally sign off on financial results why did it occur?
Sarbanes- Oxley Act because in 1980 Ratio was 1:80 for every dollar employee made ceo made 80 By 2003 1:400 there was executive hubris, self centered ceos, corruption and unfair unethical practices. this act improves ethical behavior
Management is
Series of activities assembling of Unilever's effective application of resources to need acting in a goal directed manner to accomplish carried out in an organizational setting
In Archie Carroll's Pyramid of CSR, what is phianthropic responsibility?
be a good corporate citizen, do what is described by global stakeholders additional behaviors activities that society finds describable and the values of the business support.
define the major actions by which an organization builds and strengthens its competitive position in the marketplace. how do we compete?
business level strategy
This effort is to help convince other people to get on board and help you avoid costly mistakes all steps to start and marketing etc
business plan
this describes all the elements involved in starting the new venture
business plan
Advantages and disadvantages of decision making in groups
Advantages: 1) more information bc others involved can bring next fact (likely someone has answer if u dont) 2) more perspectives and approaches to the problem (foster creative new ideas) 3) understanding ( with more people more will know why decision was made) 4)higher commitment ( people more likely to be committed to the plan when they were involved in the process) disadvantages - dominated by one, satisficing, group think, goal displacement, social loafing
Agency vs Stewardship (views on CSR) Duality?
Agency- managers of firms act as agents for shareholders and as such are obligated to maximize the present value of the firm. Managers are agents for shareholders and are obligated to maximize the present value of a firm.*** problem: ceos can push their agenda for own profit Milton Friedman- A business is a businesses. Duality: NO, CEO's have self interest; hubris Stewardship- Firms have responsibility and obligations to society as a whole not just share holders. Contributing to the long term welfare of others. Firms reasonable to society as a whole, not just shareholders . people have good morals, give them power Herb Kellheer : The business of a business is people. Duality: OK, CEO's have good intentions they will make good choices w power
father of strategy He says strategy is the determination of the long term goals of an enterprise
Alfred D Chandler
In Archie Carroll's Pyramid of CSR, what is ethical responsibility?
Be ethical, do what is expected by global stake holders meeting societal expectations of whats not written in the law
What is a satisficing group think goal displacement social loafing
choosing an option that is acceptable, although not nessecarily the best or perfect- people dont like meetings and just want to get it over with any chose anything occurs when people chose not to disagree or raise questions because they don't want to break up team spirit a decision making group looses sight of the goal and a new less important one emerges. when people fight/debate winning argument is the goal social loafing- when someone thinks their contribution isn't important so they dont contribute as much
what is knowledge management?
companies and managers need new good ideas. Knowledge workers- workers whose primary contribution are ideas and problem solving expertise. ( hard for manager to measure their knowledge and because these workers work best when the work is interesting) Knowledge management is a set of practices aimed at discovering and harnessing an organization's intellectual resources, fully using the intellects of the organizations people. It is about finding, unlocking, and sharing and capitalized on the most precious resource of an organization: peoples expertise, skills, wisdom, and relationships. Knowledge managers find these assets and help people collaborate and learn, generate new ideas, and harness those ideas into innovations.
involves moving into new businesses that are related to the company original core business (marmot expanding to other HTM)
concentric diversification
involves expansion into unrelated business
conglomerate diversification
Definition of decision making
conscious choice of course of action from available alternatives
This is building of an idea through clear investment with boss, make cheerleaders, horse trading, blessings of relevant high level officials - skunkworkers - bootlegging
corporate entrepreneurship (intapreurship) skunkwork: project teams designated to produce a new product, a team is formed with a specific goal within a specified time frame with a manager bootlegging: refers to informal efforts as opposed to official job assignments in which employees work to create new products and processes of their own choosing and initiative
This is the obligation towards society assumed by a business. It reflect the social imperatives and consequences of business success and consists broadly of policies and practices that result business responsibility for some of the wider societal good. *the obligation towards society assumed by a businesses
corporate social responsibility
identifies the set of businesses, market, or industries the organization competes and the distribution of recourses among those businesses. the business your in and mode of growth/ shrinkage what business are you in?
corporate strategy
Organizational Decision Making rational models
Bounded rationality- states that people cannot make rational decisions because they do not have all the information present, it is impossible to understand all the information presented, the problems they face are too complex, there is not enough time to process all info, people in same firm have conflicting goals *Herbert Simon Incremental model - decisions are made step by step in decisions each way and go toward bigger solution Coalitional Model- when people disagree on goals or compete for resources. groups of people band together and try to influence the decision. two or more coalitions form each representing a different preference. Garbage Can- occurs when people aren't sure of their goals or disagree about the goals and likewise are unsure of what to do. this is because some problems are so complex they are not well understood. sometimes decisions r chaotic and almost random. departure from rational decision making
Techniques for improving decision making
Brainstorming- only successful w no criticism, for creativity Devils Advocate- one person assigned to role of finding flaws to make criticism less personal Dialect Inquiry - structured debate with 2 opposing sides. Nominal Grouping- come up with ideas individually and rank them. never discuss Delphi Technique - forecasting method, never meet, discuss how to improve the organization through surveys, solutions are found through questionnaires and discussed as group later
what is controlling in function of management
Controlling- monitors performance and implements necessary changes. By controlling, managers make sure the organization's resources are being used as planned and that the organization is meeting its goals such as quality and safety.
In Archie Carroll's Pyramid of CSR, what is legal responsibility?
Do whats is required by global shareholders , obey the laws obey local state and relevant laws
decisional managerial role
Entrepreneur-search for new business opportunities and initiating new projects to create change Disturbance handler= taking corrective action during crises and other conflicts Resource allocator= providing funding and other resources to units or people; includes making significant organizational decisions negotiator= engaging in negotiations with parties outside the organization as well as inside
What is emotional intelligence?
Eq, the skill of understanding yourself. your strengths, limitations, managing yourself (dealing w emotions, making good decisions, seeking and using feedback excessing self control) and dealing effectively with others ( listening, showing, empathy, motivating, leading) - not intelligence but a set of skills you can develop - use human skill.s deliver strategic value build dynamic organization, mobilize people, learn and change - most lack empathy
what is collaboration under the challenges that characterize business landscape?
*IMPORTANT PROCESS OF KNOWLEDGE MANAGEMENT* to ensure that people in different parts of the organization collaborate effectively with one another. This is done through productive communications among different departments, divisions, or other subunits of the organization. "T Shaped" managers break out of traditional hierarchy to share knowledge freely across the organization while remaining committed to the bottom line performance of their individual business units. Collaboration across boundaries occurs in instances such as customers. Need to serve customers drives everything else
Front Line Managers
*operational managers lower level managers who supervise the operations of an organization. Title: supervisor, team leader, or assistant manager. Directly involved with non management employees, implementing the specific plans developed with middle managers. Crucial because operational managers are the link between management and non management personnel. They also create quality, innovation, and financial performance. They are the base of operations implement the plans and enforce them, typcially directors and assistant managers supervisors. From operational implementers to aggressive entrepreneurs -Creating and pursing new growth opportunities for the businesses -Attracting and developing resources -Managing continuous improvement within in the unit
interpersonal and comm skills managerial skill
*people skills ability to lead motivate and communicate effectively with those around them. tech skills more important early in career, conceptual and decision more important as u rise, but interpersonal always important.
conceptual and decision management skill
*problem solving ability to identify and resolve problems for the benefit of the organization and everyone concerned. managers use these skills when considering overall objectives and strategy of the firm, interactions among diff parts of org, and role the business in its external environment. greater responsibility requires means excising these skills w more frequency
Technical Mangament skill:
*specialization ability to perform a specialized task that involves a certain method or process. used to complete activities in daily work lives. example: finance courses from college will give skills needed to understand financial resources of organization
Top managers:
*strategic managers senior executives, that are responsible for its overall management. Focus on long term issues and emphasize survival growth and overall effectiveness of the org. come up with ideas of the organization and bring it down for implementation, think in long term perspective. titles: CEO, COO's from: From: resource allocators to institutional leaders and strategic thinkers tasks: - Establish high performance standards - Institutionalize a set of norms and values to support cooperation and trust - Creating an overarching corporate purpose and ambition
Middle Managers:
*tactical managers located in the organization's hierarchy below top level management and above the frontline managers. Responsible for translating the general goals and plans developed by strategic managers into more specific goals and plans for each individual unit. They bridge the gap between higher and lower levels. * often better than bosses bc they know the day to day operations From administrative controllers to supportive coaches and members -Developing individuals and supporting their activities -Linking dispersed knowledge and skills across units -Managing the tension between short term purpose and long term ambition.
Natural Environment ecocentric management- Sustainable growth-
- Ecocentric: has its goal the creation of sustainable economic development and improvement of quality of life world wide for all organizational stakeholders. Sustainable: is economic growth and development that meet the organizations present needs without harming the ability of further generations to meet their needs. compatible is fully compatible with natural ecosystems that generate preserve.
what is leading in function of management
Leading- stimulating people to be high performers. It includes motivating and communication with employees, individually and in groups. Leading involves close day to day contact with people, helping to guide and inspire them towards achieving team and organizational goals. Leading takes place in teams, departments, and divisions as well as at the top of large organizations.
informational managerial role
Monitor= seeking information to understand the organization and its environment; serving as the center of communication disseminator= transmitting information from source to source sometimes interpreting and integrating diverse perspectives spokesperson= speaking on behalf of the organization about plans, policies actions, and results
this refers to the principles, rules and values people use in deciding what is right or wrong. Deeply held values and belief that determine a persons behaviors
Moral philosophy morality
what is organizing in functions of management
Organizing- assembling and coordinating the human, financial, physical, informational and other resources needed to achieve goals. Organizing activities include attracting people to the organization, specifying job responsibilities, grouping jobs into work units, marshaling and allocating resources and creating conditions so that people and things work together to achieve maximum success.
The Basic Planning Process
POFADA ( Program of future activities designed to achieve objectives )
BCG Matrix
Stars: in growth stage, require high investment in order to succeed, high market growth strong position Cash Cows: in maturation state, no need for high investment they are in a developedstage and their revenue can be used to fund others. low market strong position Question Mark: high market growth, weak competitive position, require a lot of investment in order to successes, in intro phase Dogs: in the decline phase. they have low market growth and low competition
what is an organization
a group of people, working together, in a division of labor for a common purpose
what is planning in function of management
Planning- is specifying the goals to be achieved and deciding in advance the appropriate actions needed to achieve those goals. Planning activities include analyzing current situations, anticipating the future, determining objectives, deciding in what types of activities the company will engage, choosing corporate and business strategies, determining the resources needed to achieve the organization's goals. Plans set the stage for action and for major achievements.
Other Ethical Principles
Relativism- ethical behavior based on opinions and behaviors of relativism other people/ how others behave. (the norms of the culture) Egoism- the act that promotes best benefit for oneself. but in end will benefit society. Caux Principles- ethical principles established by the caux roundtable, in Swiss Kyosei (living and working together for the common good) and human dignity. *living and working together for the common good, allowing cooperation to coexist with healthy and fair cooperation. Virtue Ethics- perspective that goes beyond conventional rules, saying that morality comes from what a person with good moral character would deem right. based off faith, honestly, integrity
key to material success?
devote adequate attention to all 4 functions of management POLC
difference between entrepreneur and entrepreneur
entrepreneur: individuals who establish a new organization without the benefit of corporate support intrapreneur: work inside big companies thy are corporate entrepreneurs, using companies resources to build *ORGANIZATIONAL TRANSFORMER , corporate entrepreuship
a tendency of an organization to engage in activities designed to identify and capitalize successfully on opportunities to launch new ventures by entering new or established market or existing good or services determined by tendencies:
entrepreneurial orientation independent action: grant individuals and teams the freedom to exercise their creativity, champion promising ideas, and carry them through to completion innovativness: requires the firm to support new ideas, experimentation, creative processes that can lead to new products or processes; it requires a willingness to depart from existing practices and venture beyond status quo risk taking: comes from a willingness to commit significant resources, and perhaps borrow heavily to venture into the unknown. the tendency to take risk can be assessed by considering whether people are bold or cautious, whether they require high levels of certainty before taking or allowing action, and whether they tend to follow tried and true paths
The process of organizing, managing and assuming risk of business or enterprise, the pursuit of lucrative opportunities by an enterprising individual. Discovering, evaluating, and capitalizing on opportunities to create new goods and future goods and services.
entrepreneurship
Social Entereprenuship / enterprise
entrepreneurship leveraging resources to address social problems. creates social value by stimulating social change or meeting social needs. Enterprise: does so through market based methods, business models, and leverages resources in ways to address the problems
This is a system of rules for ordering societal values of right and wrong. This is a situation, problem, or opportunity in which an individual much choose among several actions that must be evaluation This comprises the moral principles and standards that guide behavior in the world of business a choice between two competing but arguably valid options
ethics ethical issue business ethics ethical dilemma
The Four Ongoing challenges that characterize the current business landscape:
globalization, technological change, importance of knowledge and ideas, and collaboration across organizational boundaries
characterizes of entrepreneurial orientation
independent action, innovation, risk taking, proactive, agreessive
strategic management model
meshes strategic planning and management into one
a decision situation involving a conflict between two moral imperatives in which to obey one would b to contravene the other
moral dilemma
the degree to people view an issue as an ethical one. what the influential factors on this?
moral intensity -magnitude of consequences, concentration, temporal immediacy, proximity, social consensus magnitude of consequences- positive influential, anticipated level of impact of the outcome of a given action concentration of effect- positive, refers to the extent to which consequences are focused temporality- positive, function of the interval between the time an action occurs and the onset of consequences proximity- positive, psychological or emotional closeness the decision maker feels to those affected by the decision social consensus- negative, extent the members of a society agree that an act is good or bad and probability of effect is the rise and fall of moral intensity depending on how likely people think the consequences are. if high social consensus low moral intensity
description of the product or service, assessment of the opportunity, specification of activities and resources needed to translate your idea into a viable business, and your source of capital
opportunity analysis
this is part of the business plan includes a description of the good or service. an assessment of the opportunity, assessment of entrepreneur, a specification of actives and resources needed to translate idea into viable business.
opportunity analysis
Four traditional functions of management
planning, organizing, leading, controlling (POLC)
actions or means manager intends to use to achieve goals
plans
In Archie Carroll's Pyramid of CSR, what is economic responsibility?
produce goods and services that society wants at a price that satisfies the business and investors. * do whats required by global capitalism * be profitable
time pressure,discounting future, and social realities,
time pressure- focus should be on the real time information discounting future - short term costs/ benefits weighted more than long term social realities- interpersonal factors decrease decision making effectiveness; groups make better decisions than 1 manager alone. decisions result of intense social interactions, bargaining, and politicking
What is globalization?
today's enterprises are global. It has changed the face of the work force. International markets have rising demand is increasing. This market place is gaining momentum and is irreversible Small companies export their goods and domestic firms assemble their domestic firms assemble their products in other countries. Globalization is the process by which businesses or other organizations develop international influence or start operating on an international scale.
CRS actions and policies take into account stakeholders expectations and consider the ______.
triple bottom line - this is economic, social, and environmental performance. Other words 3P's profit, people, planet
the acquisition or development of new business that product parts or components of the organization product
vertical integration
SMART goals are
specific , measurable, attainable, relevant, time bound This person designed a plan that was supposed to be accomplished so that people who work on it understand it. * efficient goals have these qualities *
groups of individuals who affect and are affected by achievements of orgs mission goals and strategies
stakeholders
involves managers from all parts of the organization in the formulation and implantation of strategic goals and strategies
strategic management
involves making decisions about the oranizations long term goals and strategies, has strong external orientation and cover major portions of the organization
strategic planning
strategic vision / mission
strategic vision points to future, where the org is haeading and what it can be * long term mission clear expression of basic purpose of organization *what they do
Planning Levels
strategic- making decision on long term senior execs tactical- translate strategic goals and plans into specific goals and plans * example new rollout of product, tactical plan for manufacturing unit might involve design, testing. decided what unit must do operational- identify specific procedures and processes , front line managers.
____ is the determination of long term goals of an enterprise, the establishment of course of action, and allocation of resources to ensure implementation
strategy Chandler 1962
Management skills:
technical, conceptual, interpersonal
As stated by Joseph Schumpeter 1934: entrepreneurship is
the pursuit of lucrative opportunities by enterprising individuals creative destruction
Consider these entrepreneurship tactics for the Internet:
Intermediary: bring together buyers and sellers for commission (eBay) Affiliate: ( pay commissions to other sites to drive business to their site) zazzle. subscription model, advertising support
what is technological change?
Internet: easier for companies to communicate. marketplace, means for manufacturing goods and services, a distribution channel, information service, drives down cost and speeds up globalization, improves efficiency of decision making
entrepreneurial activities
Invention: new idea/product innovation: commercializing it (making it into something of value) imitation: adoption by smaller firms
interpersonal managerial role:
Leader= staffing, developing, motivating people liaison= maintaining a network of outside contacts that provide information and favors figurehead= performing symbolic duties (ceremonies) and serving other social and legal demands
This model helps evaluate strategy alternatives and managing a corporation portfolio (diversified business)
BCG matrix star- heavy investment but generates needed revenue cash cow- generates revenue beyond investment ?- heavy investment to move to better position dog- remaining revenue realized then diversified
Step of decision making:
1. idenifiky and diagnose the problem 2. generate alternative solution 3. evaluate alternative 4. make choices 5. implementing the decision 6. evaluating the decision
Management levels:
Top ( strategic managers) Middle ( tactical managers) Frontline ( operational manager)
Strategic Management Process
1. mission/ vision/ goals 2. internal/ external analysis 3.SWOT analysis 4. strategic implementation 5. strategic control
Henry Mintzberg
"A theorist who argued that a manager in a firm needs to carry out certain roles. He identified three min roles and these are interpersonal roles, information roles and decision-making roles."
Entrepreneur steps
1) Idea 2) Franchising 3) Internet 4) intermediary 5) affiliate 6) subscription models 7) social entrepreneurship define these entrepreneurship steps 8) going public - IPO 9) Planning
The four approaches to ethical dilemma
1) Utilitarian- greatest good for greatest number, outcome based 2) Moral rights- maintain rights of those affected. consent, privacy, free speech, life, safety 3) Universalism- if something isn't right for one person, its not right for anyone. golden rule 4) Justice - standards of equity, fairness, impartiality. treat people fairly. *3 forms procedural- applies to all people, regular employees distributive- distribution and losses handed out fairly (getting grade u deserve from group project) compensatory- compensation for unfair treatment
Steps in the Planning Process
1. Situational analysis: a process planners use within time and resources constraints to gather interpret summarize all information relevant to planning issue under consideration 2. Alternative plans/goals: generate alternative goals that may be pursed in the future and the alternative plans that may b used to achieve those goals - SMART GOALS 3. evaluation: evaluation the advantages, disadvantages and potential effects of each alternative goal and plan. they must prioritize those goals and even eliminate some of them. also, manager will consider carefully the implications of alternative plans for meeting high priority goals. come up with contingency plans for alternative sits. 4. selection- once managers have assessed the various goals and plans they will select one that is most appropriate and feasible. the evaulation process will identify the properties and trade offs among the goals and plans 5.implementation- managers and employees must understand the plan, have the resources to implement it and be motivated to do so. 6. monitor and control: managers must continually monitor the actual performance of their work units against the unit goal and plans. they also need to develop control systems to measure that performance and allow them to take corrective action when the plans are implemented improperly or when the situation changes.
Crisis management should follow these steps
1. Strategic actions (integrate Cm into strategic planning) 2. Technical and Structural actions (create CM team and budget) 3. evolution and diagnostic actions (conducting audits of threats and establishing tracking system) 4. communication actions ( providing training for dealing with media, community, police) 5. psychological and cultural actions ( provide training and psychological support systems regarding the human and emotional impact of the crisis)
What are the two types of ethics programs?
Compliance based- designed by corporate counsel to prevent, detect, and punish legal violations. Program elements establishing and communicating legal standards and procedures, assigning high level managers to oversee compliance, auditing and monitoring compliance, reporting primal misconduct, punishing wrongdoers, and taking steps to prevent in future *staying out of law trouble Integrity based- concerned w law but instill in people a personal responsibility for ethical behavior. companies and people govern themselves through a set of guiding principles that they embrace. goes beyond trying to stay out of law trouble
The psychological barrier of control
Illusion of control- a belief that one can influence events when one has no control over what will happen. this can lead to failure bc decision makers will ignore risk and fail to evaluate odds Framing effects- how problems or decision alternatives are phrased or presented and how these subjective influences can override objective facts. managers also may frame a problem based on other issues they've dealt with so they dont search for new alternatives.
This classifies people into categories based off on their level of moral judgment (virtue ethics) what are the categories?
Kohlbergs model of cognitive development Pre-conventional (self)- make decisions based on rewards and punishments and immediate self interest Conventional (others)- conform to expectations of ethical behavior held by groups such as society, family, peers Principled (humankind)- see beyond authority, laws, and norms and follow their self chosen ethical.
In the sense of the competitive landscape, management is
a challenge requiring knowledge and skills to adapt to new circumstances
reson for vertical integration?
done to reduce costs by owning its suppliers/ distributors etc
managers are effective by: efficient by:
effective: achieve organizational goals efficient: achieve goals with minimal waste
1) Idea 2) Franchising 3) Internet (Intermediary, affiliate, sub models) 4) social entrepreneurship define these entrepreneurship steps 5) going public - IPO 6)_ Planning
great product, viable market and good timing are essential franchising- entrepreneural alliance between two organizations: franchisor and franchisee. franchisee is one who takes on their new store and hopes to make profits, franchisor has already developed a successful service looking to expand their store market presense, market share, profit margins Internet- consider transaction free, advertising support model (advertisers pay site operator to gain demographic access) Intermediary- bringing together buyers and sellers and charging a commission on their sale ( eBay) Affiliate: pay commissions to other sites to drive business to their own sites (zazzle) subscription models: monthly fee to access social entrepreneurship: leveraging resources to address social problems. *social enterprises do this through market based methods Going public- Initial stock offering to raise capital
mckinsly 7 s frame work
hard S: system, strategy, structure soft S: staff, style, skill and shared value
Stages of Kohlberg's Theory of Moral Development
level 1 ( pre) - Stage 1: obedience,reaction to punishment - Stage 2: individual interest, seeking rewards level 2 ( conventional) - stage 3: interpersonal, good boy/girl seeking social approval - stage 4: authority, obey authority conforming level 3 ( principled) - stage 5: social contract, behavior driven by balance of social and individual order -stage 6: universal ethics, behavior driven by internal moral principles
Business Level Strategies
low cost: build competitive advantage by being efficient and offering a standard no frills prouct differentiation: competitive advantage by being unique in its industry along one or more dimensions. ocus on market that needs are not controlled by money, by wanted to have extra in your pocket. *rolls boyce, a bunch a diff stuff, people willing to pay alot for extras of product, not price sensitive implementation: once managers have selected the goals and plans, they must implement the plans designed to achieve the goals. strategic control: a system designed to support managers in evaluating the organizations process regarding its strategy and when discrepancies exit, take corrective action
problems are unstructured leaving decision maker uncertain how to proceed Types of decisions
programmed: have been encountered and made before. objectively correct answers and can be solved w simple rules/ calculations. non-programmed: managers typically face this, new novel complex decisions having no certain outcome. they have a variety of possible solutions all with drawbacks demand creative approaches
Barriers to effective decisions
psychological, time pressures, discounting the future. social realities