Management Test 1

Negotiating Effectively

*BATNA: best alternative to a negotiated agreement *Reservation Value: lowest off negotiator is willing to accept; it is the point at which a negotiator is indifferent between accepting or rejecting for BATNA *ZOPA: zone of possible agreement (space between both res values) 1. Assess your BATNA 2. Calculate your Res Value 3. Assess other's BATNA 4. Calculate other's Res Value 5. Evaluate the ZOPA 6. Identify your multiple interests 7. Create a scoring system 8. Calculate Package Res Value 9. Identify other's multiple interests *reaching an agreement -claim value: negotiator attempts to gain benefits for their position *distributive process *first offer = anchor/tone -create value: expanding opportunities/issues to be evaluated by negotation *each party = satisfied *integrative process *build trust, share info, ask ?'s, strategically share info, make multiple offer simultaneously *common mistakes: irrational escalation of commitment, anchoring/adjusting, framing, availability of info, negotiator confidence -is no deal best outcome? if so, check BATNA *mediator: individual who does not make final decision but works with each party to find some common ground *arbitrator: individual who listens to both sides of a disagreement and makes final decision -a judge, binding *negotiating across cultures -egalitarianism: comfortable with confrontation (Italy, Spain) -hierarchy: less confronting out of respect to higher social powers (China, Japan, Brazil) -low-context norms: communicate directly, info explicit and meaning clear (US) -high-context norms: communicate indirectly, info embedded, must infer (Russia) *focus on facts, manage emotions, practice perspective taking, trust *POSITION = WHAT *INTEREST = WHY

Team Development - Stages of Development

*Bruce Tuckman - stages of development 1. forming: define task, how to accomplish it, & set ground rules 2. storming: conflicts about interpersonal issues & differences in perspectives 3. norming: new standards & encourage more collaborative behavior 4. performing: adopt and play roles that enhance the activities of the group 5. adjourning: task completed, team disbanded *want positive end result *teams evolve over time

History of Strategy

*Greeks: leader's ability to marshal resources in army *"The Art of War": Chinese military treatise, avoidance of conflict through strategy *Roman Empire: considered a plan of action to complete goal *tactics different from strategy *to achieve competitive stronghold: 1. generate better info than rivals 2. analyze info to make strong/informed decisions 3. selecting among different choices 4. converting strategic choices into decisive action *post WWII: corporate planning & analysis of business strategy -businesses grew in size, scope, and complexity -conglomeration: the act of growing through unrelated diversification, essentially by acquiring companies in different industries *1970/80: corporate planning failed due to rigid adherence to plan

Personality Assessment

*Myers-Briggs Type Indicator (MBTI): most widely used personality assessment tool in the U.S. a. sensing (facts) b. intuition (brainstorm) c. thinking (organized) d. feeling (influenced) e. extraverted f. intraverted g. perception h. judgement *measure in unique way of 4 personality dimensions, 16 personality types (E-I, S-N, T-F, J-P) --> polar opposites of letters, can't be both *good but not perfect covering all aspects *different individuals thrive in different situations

Triarchic Theory of Intelligence

*Robert Sternberg *3 components 1. computational (analytic): similar process to IQ test, knowledge development 2. experiential (creative): open & willing, can apply existing knowledge to unique situations 3. contextual (practical): ability to shape and be shaped by external environment, "big picture" *cultural intelligence (subset of contextual intelligence): the ability to understand and respond appropriately to different contexts and situations --> increasing needs as a result of globalization --> must know own culture, others', and then adapt

Quantitative (Management Science) Perspective (mid 1940s-present)

*WWII caused mgmt changes *uses mathematics and statistics to aid in management decision making and problem solving (enhanced by development of computer) *ex --> WWII to move massive materials and big groups of people *ex --> companies linear program to optimize operations, stat process control for quality mgmt, capital asset pricing model *3 subsets 1. operations research: right from WWII military groups, mathematical model building 2. operations management: uses quantitative techniques to analyze all aspects of the production system (specializes in physical production of g/s, mgmt science to solve manufacturing problems, forecasting & scheduling & simulating & etc.) 3. information technology (MIS): provide relevant info to mgmt in a timely/costly/efficient manner *quants: rely only on mathematical techniques = dangerous

Teams

*a group of two or more people with complementary skills who are committed to working together to achieve a specific objective *key characteristics: collective/common/shared goal, interdependence, bounded, relatively stable over time, members have some level of authority to manage own work and internal processes *advantages: breadth of info and expertise, diversity of perspectives, legitimacy of process, acceptance of solution *troubles: process losses (too many resources on team development), suboptimal info sharing, unproductive conflict, social loafing, groupthink *appropriate with complex projects *shared leadership roles, mutual/individual accountability, purpose specific to team, collective, complex and interdependent tasks, open-ended discussions *opposite --> work group: clear leader, individual accountability, purpose is same as organization's mission, independent tasks, individual work products, pre-determined work structure *task complexity: amount of info that must be processed to understand tasks, the degree of uncertainty about possible outcomes, the presence of subtasks that require a range of skills/knowledge, or the absence of standardized procedures (require input of many individuals) *task interdependence: the extent to which group members need to work with and rely on each other to produce the collective work of the group (sometimes inherent in tasks themselves bc they require many perspectives)

Systems Thinking (mid 1950s-present)

*ability to see the distinct elements of a system/situation and the complex/changing interaction among those elements *system: set of interrelated parts that function as a whole to achieve a common purpose *subsystems: parts of a system, such as an organization, that depend on one another (interconnected) *synergy: whole > sum of parts *relationship among parts forms the whole system, look for patterns/relationships, look at BIG picture *managers must recognize how 1 change can have many effects *open systems view: focuses on inside & outside relationships --> environment consists of forces, conditions, and influences outside the org --> considers impact of stages a. input: acquire external resources b. conversion: inputs are processed into g/s c. finished goods are released into the environment d. sales of outputs allow org to obtain new supplies of inputs

Internal Environment

*affect the firm from within its boundaries 1. Owners -owners: the people or institutions that maintain legal control of an org -sole proprietorships vs. large firms (publicly owned by shareholders) 2 Board of Directors -bod: group of individuals elected by shareholders and charged with overseeing the general direction of the firm -intermediate group needed at times to ensure managers serve interests of shareholders -all shapes, sizes, & representations -now more independent from executive ranks (especially after Enron/WorldCom) *Sarbanes-Oxley Act holds board members accountable now 3. Employees -employees: people who make products & provide services that allow firm to exist -mix of permanent/temporary employees -complexity increased with employees of different demographics 4. Culture -culture: a pattern of basic assumptions about the way an organization should work and the manner in which individuals in an org should interact with each other -embodies who/what an org is or represents -physical environment --> observable characteristics --> formal/informal -behavior/manners/interactions accepted -develop over long-time, by-product of founder's personality *potential competitors: presently not in the task environment but could enter if they choose *barriers to entry: factors that make it difficult and costly for a company to enter

Managing Adversity

*aligned with their locus of control (way they confront adversity) --> ex: high internal LOC, can control some aspects or adverse situations *resilience: the belief that one can control or adapt to certain events and outcomes and be able to bounce back from difficulty (strong/tough) --> Nelson Mandela! *learned helplessness: nothing they can do --> eventually universal & personal helplessness --> blame it on ______ *response strategies: avoid, survive, cope, manage, harness *to address adversity, consider: 1. control (influence) 2. ownership (responsibility) 3. reach (% of life) 4. endurance (how long) *control & ownership mutually reinforcing - as an increase in control is felt, and increase in ownership is felt *reach & endurance interdependent (if far reaching, it's likely to endure)

Levels of Conflict

*an emotional or cognitive response that occurs when interests, perspectives, and behaviors of one individual/group explicitly differ from those of another individual/group -suppression can lead to extreme consensus (challenger), & suboptimal decisions -lifeblood of vibrant, progressive, stimulating orgs -sparks creativity, innovation -interaction of interdependent parties, who perceive incompatibility and interference *brings about: heightened emotions, distorted perceptions, polarity of positions, damage, unproductive/unethical behavior *negotiation: process by which 2 parties attempt to reach agreement on an issue by offering or reviewing various positions of courses of actions *levels of conflict -interpersonal: between members of same group, competition > cooperation -intergroup: between groups *scarce resources, "the enemy", pride exaggerates differences *social identity theory: group members of an in-group will seek to find negative aspects of an out-groups to enhance their self-image --social categorization, social identification, & social comparison *realistic conflict theory: limited resources will lead to conflict between groups (in-group formation, friction, integration)

Responses to Conflict

*attempting to satisfy one's own concerns (y-axis), attempting to satisfy other party's concerns (x-axis) *Forcing Collaborating Compromising Avoiding Accommodating a. Forcing: use when quick action is vital, on important issues w/unpopular courses of action, vital to company welfare, protect from people who take advantage of noncompetitive behavior b. Avoiding: use when issue is of passing importance, other issues more important, no chance to satisfy, potential damage, to let people cool down c. Accommodating: when you realize you're wrong, goodwill gesture, build social credit for later, continued competition would damage cause, harmony more important, already losing d. Compromising: 2 opponents strongly committed to mutually exclusive goals, temporary settlements, under time pressure, back-up mode e. Collaborating: integrative solution, objective is to learn, merge various insights, gain commitment, work through feelings that have interfered *prob: takes energy, effort, and time

Characteristic - Manager-Led vs. Self-Directed Teams

*be specific about various roles first *manager-led teams: teams in which the manager acts as the team leader a. clear direction from leader, must monitor/manage performance processes, and define goals/methods/functioning b. vertical teams: teams composed of a manager and his or her subordinates in the formal chain of command (typically from same unit in an org) c. horizontal teams: teams composed of employees from about the same hierarchical level but from several different departments in org (can have multi-perspective approach) self-directed teams: teams that determine their own objectives and the methods by which to achieve them a. empowers workers when giving them authority and responsibility b. team-building and decision-making goals assigned c. intervention may be necessary

Role of a Team Leader

*behaviors: demonstrate integrity, be clear & consistent, create positive energy, find common ground, manage agreement and disagreement, encourage and coach, share info *don't ignore bigger, external boundaries and contacts (can allocate resources and add/remove people) *gain respect and commitment --> influential

Managing Boundaries

*boundary manager: determines how the team will work with clients, upper management, and others who have an interest in the team's product *they buffer the team from organization infighting, persuade top management to support team's work, & coordinate and negotiate with other groups on work deadlines *can have no/minimal interaction, passive, or active *identify key people who will influence/be influenced by group

Classical Perspective (1890-1950) - bureaucratic organizations

*bureaucracy most often associated with efficiency, red tape, speed, creativity, effectiveness *bureaucratic organizations approach: systematic approach that looks at org as a whole and uses a formal system to ensure effectiveness and efficiency (control based on knowledge) *Max Weber a. problem before: employees were loyal to a single individual, leaned towards desires/goals, selfish employees b. solution: manage on impersonal/rational basis 1. division of labor (clear line of authority and responsibility) 2. positions organized in hierarchy of authority 3. managers subject to rules and procedures that ensure reliable/predictable behavior 4. management separate from ownership of org 5. record in writing 6. personnel selected and promoted based on technical qualifications **example: UMN

Business-Level vs. Corporate-Level Strategy

*business-level strategy: how a company will compete in given business and position itself among competitors -comparative advantage *corporate-level strategy: the way a company seeks to create value through the configuration and coordination of multi-market activities -industry attractiveness -allocation of resources among businesses -higher-level decisons *different industries = different profitability profiles --> influence defining strategies -average return on invested capital varies by industry *y-axis: competitive scope/market appeal *x-axis: competitive advantage *broad, narrow, low cost, differentiation 1. Low-Cost Leadership 2. Low-Cost Focus 3. Differentiation 4. Differentiation Focus

Characteristic - Collocated and Geographically Distributed Teams

*collocated teams: teams that use a significant amount of face-to-face communication to make operating decisions; they operate in close proximity, engage in a lot of social interaction, and provide quick feedback on the team's progress to one another -observations easier, reading body language, trust, connections, sharing experiences geographically distributed teams: teams that are made up of geographically or organizationally dispersed members who rely heavily on electric tools such as email/voicemail/telephone/video-conferencing to interact with one another -backgrounds/style of work can impede efficient communication

External Environment

*critical to org's success, especially to stay ahead *outside of the org is not under direct control of org *source of substantial uncertainty for companies -managing uncertainty is a critical task for companies *uncertainty: extent to which managers can understand and predict changes that will affect the business 1. Complexity 2. Dynamism 3. Resource scarcity

Recent Trends in Org Design

*customer-centric --> problem: silos: function or division that operates by own rules and doesn't openly share info with others *fluid nature, inward focused *to attain customer-centric: -coordination: aligning action of silos w/ specific direction -cooperation: aligning behavior in formal and informal -capability -development: building skills, reward, create career paths -clout: provide greater power to customer facing units -connection: with external partners, redefine boundaries

Decision Rights

*decision rights: include the rights to initiate, approve, implement, and control various types of strategic and tactical decisions *delegation: process by which managers transfer decision rights to individual employees -specific decisions made by people with most info -pro: managers leverage time, increased employee motivation and satisfaction, quicker responses -con: managers reluctant to let go due to lack of confidence and fear of being blamed *centralized org: formal structures that control employee behavior by concentrating decision in a top-down, hierarchical fashion -functional structures -larger/older/mature industries -shortens time for changes -huge burden on sr. manager *decentralized org: key decisions are made at all levels of firm, not mandated from top -network & divisional -can adopt to OT/uncertainty -highly skilled employees -coordinate efforts through standardization, individual-level decision making -conflicts of interest: lower level $ vs. quality, shortage of info on lower

External Environment - Task Environment

*direct impact on the org on a regular basis 1. Competitors -competitor: any organization that creates g/s targeted at a similar group of customers -vastly changing due to new technology, rapid pace of globalization, & speed of innovation *lots of competition in electronics, automobiles, PCs *ex: U.S. automotive must design cars to fit international markets, stiff competition from local manufacturers in these existing markets -sellers of complementary products: orgs that sell g/s that are usually consumed with those produced by the firm -distributors: orgs that help other orgs sell their g/s to customers 2. Suppliers -supplier: provides resources or services for a firm to help in its creation of products/services -typically have several suppliers 3. Customers -customers: the people or orgs that buy a firm's products/services -firms have multiple sets of customers (retail & commercial) *case study: Netflix

Types of Negotiations

*distributive negotiations: single-issue negotiations that are assumed to be part of a "fixed pie" where one person's gain is another person's loss -zero-sum, seek to gain larger -short-term encounters -competitive, adversarial -4 characteristics: distribution of resources, focus on winning, notion of limits, bargaining zone framework *reservation point: negotiator won't go above or below (walk-away point) *bargaining zone: range of settlements within which it is better for both parties to agree (positive-acceptable positions overlap, negative-no overlap) *integrative negotiations: focus on multiple issues to "expand the pie" and actively seek alternative solutions that satisfy both parties -assess each side's preferences/interests to # of different issues -each makes trade-offs -same concerns as distributive -non-zero sum "I'll do X if Y" -must share info/interests

Contingency View (1970-present)

*every situation is unique *managers must determine which method will work, identify key contingencies for current situation *organization structure should depend upon industry and other variables *case view: each situation is unique, determining new methods for every situation *universalist view: classical perspective, one org mgmt style works for everyone *BUT environment impacts organization, therefore no best way to manage *SO contingency view --> organization phenomena exist in logical patterns; managers devise and apply similar responses to common types of problems *ex: mgmt at manufacturing firm vs. school system *managers must be FLEXIBLE

Team Development - Team Norms

*expected team behaviors, revisit halfway through project *attendance, participation, confidentiality, roles, expectations *5 categories: meeting, working, communication, leadership, consideration *channels of communication, build culture *social loafing: disengaging from the team process and failing to contribute to the team's recommendations or other deliverables -norms hold members accountable for contributions

Humanistic Perspective (1930-present) - human relations

*focused on the need to understand human behaviors and attitudes in the workplace as well as social interactions and group processes; importance of people *effective control comes from within worker, not strict control *received little acknowledgement at first due to popularity of scientific... but... a. Hawthorne studies i. 1895, Elton Mayo ii. purpose: to see if light induced better productivity iii. results: controversial but best explained factor was human relations (employees performed better when managers treated them with a positive manner) iv. Hawthorne effect: subjects behave differently because of active participation of researchers (money too) *Mary Parker Follet a. goals to reduce conflict b. stressed importance of people over engineering techniques c. workers have knowledge of task, they should control task **d. empowerment & facilitation & worker participation *Chester J. Bernard a. informal organization: cliques, informal networks, natural social groups (stressed) b. acceptance theory of authority: people have free will and can choose whether to follow management orders

Classical Perspective (1890-1950) - administrative principles/science

*focused on the total/entire organization *Henri Fayol, French mining engineer a. 14 Principles of Mgmt i. unity of command ii. division of work iii. unity of direction b. identified 5 functions of mgmt: planning, organizing commanding, coordinating, and controlling

Theoretical Model of Teams

*helpful in identifying problem Inputs -goal/purpose -composition (expertise, personalities, individual goals, diversity, size) -structure (roles, authority, status & interdependence) -tools States + Processes -team states *psychological safety/trust *cohesion *norms *identity -team processes *rigorous decision making *effective participation and meaningful influence *conflict management Outputs -meaningful results -member satisfaction -viability -learning & adaptation *process gains = synergy *process losses = obstructions/hindrances

External Environment - General Environment

*indirect influence on org *basis of strategic context 1. Technological: the means, systems, or processes that a firm uses to produce or achieve output -success by capitalizing on new innovations, even if not their own idea -scientific/tech advancements -robots: 9-49% of jobs gone -biggest risk: cyber risk 78% -ex: newspapers on internet 2. Economic: the general economic environment in the markets in where the firm performs activities -ex: growth/contraction GDP, inflation, consumer purchasing power, unemployment -economy on upward trajectory trend, yet stagnant wages and growing income inequality (companies targeting certain classes for business) -shrinking middle class -structure: more developed countries are stable/lower variability in inflation/interest, less developed opposite -consider: resource position, currency issues, labor situation -home building industry especially prone to shifts -world region top GDPs: NA, Europe, China, India, Japan 3. Political/Legal: events, activities, regulations, and laws that affect a firm in its markets @ any scale -gov regulations, taxes, tariffs -political activities designed to influence company behavior (political pressures for org) -intellectual property laws -corruption = less wealth -immigration system changes -issues for restaurant industry -direct & indirect impacts -asset expropriation (ex: oil) -political dimension: political events/activities in market that affect firm -legal dimension: the regulations and laws firms encounter in their markets *dictate way firms process and market to consumers 4. Socio-cultural: demographic characteristics as well as the values and customs of a society -population growth, aging, immigration, household formation, women in workforce, health, etc. -conscious consumer trend: consumers make life style decisions considering impact on themselves/family/community -aspects: older ages, changing racial composition, cultural dimensions differ widely -social values: deeply rooted system of principles that guide individuals in their everyday choices and interactions (affect how employee act/behave & preferences of customers) -social dimensions 1. low vs. high power distance (low-shared decisions) 2. individualism vs. collectivism (self vs group goals) 3. cooperative vs. competitive 4. low vs. high uncertainty avoidance 5. long vs. short term orientation Drivers of Global Change (Al Gore) -economic globalization -digital revolution -climate change*** (lower GDP, higher food/commodity cost, broken supply chain, increased financial risk) -dwindling natural resources -shifts in the global balance of power -advances in life sciences

Humanistic Perspective (1930-present) - human resources perspective

*maintained interest in worker participation/considerate leadership, but shifted emphasis to considering daily tasks/managing work performance *design of job tasks + theories of motivation *Abraham Maslow a. hierarchy of needs for employees (physiological needs to self-actualization needs) *Douglas McGregor a. Theory X vs. Theory Y (managerial philosophies) i. Theory X: employees are lazy, need strict managers (classical perspective, early human relations ideas, humans don't like work) ii. Theory Y: employees are motivated, decentralize authority (orgs can take advantage of ideas/intellect of employees, self-direction) iii. theory to ponder: telecommuting in the workplace

Video: Teamwork on the Fly

*more open-ended, project-based work today *goals shifting, include people from different backgrounds *not enough time to build foundational trust *team-ing 1. Speak up 2. Listen intensly 3. Integrate different facts and points of view 4. Experiment iteratively 5. Reflect on your ideas and actions

From Strategy to Organizational Design

*organizational design: the formal systems, levers, and decisions an organization adopts or employs in pursuit of its strategy -org design & strategy are co-evolutionary and reciprocal *decisions about: -job design, strategic grouping (departmentalization), and linking -job analysis: process of getting detailed info about jobs (WWWWWH, under what conditions) *building block *purpose: get 2 types of info 1. job descriptions (observe) 2. job-specific competencies/ksao's *important decisions: 1. Division of Labor: the manner in which work is divided among employees *must consider scope of each individual's position (narrow or broad) *trade-offs --> highly specialized jobs = deep expertise but low job satisfaction, thus turnover 2. Coordinating Mechanisms: coordinating division of labor efforts into a coherent manner a. organizers: believe that more control is warranted in organizational design to ensure that jobs are performed satisfactorily/efficiently *job standardization, specific roles, hierarchical leadership *extreme: bureaucratic approach (highly formalized) *pros: formal communication and control, can withstand, large/complex orgs, diversity & high turnover, fair & efficient, measurable tasks *cons: poor in innovative, dynamic environments b. behaviorists: support a more open organizational structure where roles and responsibilities are loosely defined *clan approach (weber): a type of org control that includes self-supervising teams that are responsible for a set of tasks *work well when conditions are uncertain & work activities difficult to measure *employees cross-trained *broad organization design choices regarding division of labor and coordinating mechanisms... NOW... implement using structures

Formal & Informal Structures

*organizational structure: the pattern of organizational roles, relationships, and procedures that enable coordinated action among employees -if well defined, firm maximizes internal resources -3 primary functions 1. defines roles of labor force 2. coordinates activities between members (important bc interdependencies) 3. identifies borders of firm and external relationships ---------------------------------- *structures 1. Functional Form -functional structure: structure that organizes firm in terms of main activities performed *small businesses, limited p/s *functional expertise/efficient *creates economies of scale *con: narrow view of firm's goals, hard to measure contributions, poor decisions, isolation of functional groups 2. Divisional Form -divisional structure: groups diverse functions into separate divisions *can be organized around products, geographies, clients *focus on output/way it goes to market *pro: more employee loyalty, greater accountability, increased coordination, more mgmt capabilities, adjusts quickly *works well with high degrees of uncertainty, innovation *con: duplication prevents economies of scale, competition between divisions, less functional expertise 3. Matrix Form -matrix structure: both divisional and functional managers have equal authority in organization *grid pattern *employees work for 2+ units *focus on multiple dimensions *good when multiple environmental pressures, high degree of interdependence between distinct units *con: complexity=confusion with priorities and coordination, inefficiency 4. Network Form -network structure: "knowledge workers" are organized to work as individual contributors or to be a part of a work cluster that provides a certain expertise for the organization *ex: consulting, advertising *can span across entire industry (Hollywood movies) *come together, complete, disperse *temporary or permanent *flat, no resources up/down *informal, relationships dominate operations *pro: quick to adapt *con: often results in duplication of resources and low levels of accountability *informal structures --> relationships formed as a result of prior actions *when comparing 4 formal, consider resource efficiency, responsiveness, adaptability, accountability, and best in which environment

Understanding Your Personality (avenue into self-awareness)

*personality: a system of enduring inner characteristics, tendencies, and temperaments that are both inherited and shaped by social, cultural, and environmental factors *2 parts: how they are perceived by others AND inner thought processes *Robert McCrae and Paul Costa a. 5 factors w/sliding scale b. differences affect how work gets done and how people interact c. extraversion, openness, conscientiousness, agreeableness, and neuroticism (emotional stability)

Characteristic - Leveraging Diversity

*pros: more perspectives --> more innovative in long-term, more ideas generated *cons: variance in performance, conflict, misunderstandings, poor in short-term *must be comfortable working through differences that result from unfamiliarity, know how others view oneself, adopt shared norms *if task is straightforward and requires efficiency, homogeneous team needed

Interconnectedness of Global Economy

*recessions represent constant changing nature of global business *DIJA (Dow Jones Industrial Average): shows daily stock price movements of 30 large, publicly owned companies *globalization has affected pace and intensity of change -also brought about powerful, new competitors *globalization: the integration and interdependence of economic, technological, socio-cultural, and political systems across diverse geographic regions -dates way back *world trade: value of world's merchandise exports *global trade agreements (post WWII): IMF, GATT *over 400: WTO, EU, NAFTA, ASEAN, & MERCOSUR -Europe highest concentration of trade *free trade -trade alliances have fueled international trade (pro) -trade restrictions (con), Chiquita ruined after EU added quotas on bananas -comparative advantage = specialization = free trade = better efficiency and economy

Team Characteristics

*relationships formed through structuring team environments *foster communication, designing is key *task objectives: issues that orient team members toward their goals and priorities and help them understand how their work fits into the bigger picture --> big picture with small tasks/benchmarks along the way --> team defines manner in which they will reach goals

Team Process - Promoting Team Learning

*requires team members to be deliberate *psychologically safe: an environment which encourages an open expression of ideas and feelings without fear of being penalized *when not psychologically safe, team members tend to focus on achieving own goals rather than cooperative goals

Characteristic - Team Composition and Size

*right mix of interpersonal and technical skills, people can be added in (not unusual through solution or recommendation process) *team size should reflect nature of task (right mix of perspectives/skills) *the bigger the team, the less collaboration, the more coordination

Humanistic Perspective (1930-present) - behavioral science/organizational behavior

*scientific methods & draws from other disciplines to develop theories about human behavior and interaction *job satisfaction/stress, leadership and motivation, group dynamics and org policies, interpersonal relationships *organization development: at first to help with health problems, now addresses increasing complexity of orgs *many contemporary scholars

Organizational Structure

*shapes how people experience and work *org's culture: way employees feel about company and values they hold *organization: a collection of individuals working together to advance strategic objectives of firm *factors/contingencies that affect it: 1. Strategy -low-cost strategy, centralized structure, functional -differentiation, flexible structure, product/mkt/geo -increased vertical integration or diversification also requires more flexible, divisional 2. Environment -structure must be more flexible when environmental change is rapid 3. Core process/technology -task variety: number of new probs manager encounters -task analyzability: availability of programmed solutions to a manager to solve problems **High TV, Low TA = non-routine & flexible structure **Low TV, High TA = routine, functional structure 4. Human resources -highly skilled workers whose jobs require working in teams usually need a more flexible structure (eg CPAs)

Forms of Intelligence

*skills & abilities: acquired/developed from experience, education, and training *intelligence: a person's ability to profit from experience, acquire knowledge, think abstractly, and adapt to changes in the environment *intelligence quotient (IQ): overall quality of an individual's mental abilities, and which can be plotted on a standard normal distribution a. Alfred Binet 1900s b. middle 68% from 85-115 c. ignores info-gathering process due to time limits

Sources of Conflict

*sources: data, relationships, structure, values/interests *affective conflict: occurs when disagreements between individuals are attributed to personal differences instead of task-related differences -tend to attach personalitities -goal/success driven individuals experience often -leads to anger/distrust/stress *cognitive conflict: results from disagreements over work-related issues or task itself -helps reach better solution -helpful with groupthink -leads to creativity/learning -prob: can easily spill over into affective conflict *conflict escalation: one person's negative behaviors encourage/foster other's negative behaviors *conflict de-escalation: conflict reduced or eliminated

Stakeholder Approach

*stakeholder: any group/individual who can affect or is affected by the achievement of an organization's purpose *stakeholder mapping: map all relationships relevant to firm, identify subsets within stakeholders, determine stakes for each stakeholder, define connections between stakeholders *stakeholder management process: a. strategic review process: senior leaders of a corporation meet with business unit managers to review progress toward specific goals b. environmental scanning: tool managers use to scan the business horizon for key events and trends that will affect business in future i. scenario building: forecasting the likely result that might occur when several events and stakeholders are linked together ii. contingency planning: systematic assessment of the external environment to prepare for a possible range of alternative futures for the organization iii. trend analysis: tool where key variables are monitored and modeled to help predict a change that might occur in the environment c. contextual intelligence: ability to understand the impact of environmental factors on a firm & how to influence those same factors i. can enhance by --> looking at history, current trends, firsthand experiences, scenario building/contingency planning d. managing uncertainty i. low uncertainty: lower rate of change of contextual factors, less factors in environment, less adaptation ii. high uncertainty: high rate of change of contextual forces, many factors, more adaptation

Defining Strategy

*strategic positioning: a performance theme as base 1. Choosing a Set of Activities -strategic position: place in industry that firm occupies by way of the products or services it offers and the methods it uses to deliver them *cost leadership/differ/focus 2. Making Trade-Offs -w/o trade-offs, lack of focus 3. Creating Fit Among Activities -goal is to reduce cost or increase differentiation (competitive & sustainable) -criteria to evaluate: external fit, internal fit, differentiation, implementable *strategy is dynamic -strategic inflection points require alteration in a company's strategy: new tech, different regulatory conditions, changes in customer values/preferences, moves/responses of competitors *this does not = erratic behavior -build on your strengths -maintain a coherent identity

Strategy

*strategy: pursuing a set of unique activities that provide value to customers; making trade-offs about which business to pursue, what products to produce, and which customers to serve; and aligning resources to achieve organizational objectives *a goal and a set of moves designed to achieve a (sustainable) comparative advantage in a defined mkt *an integrated set of choices about what a firm wants to accomplish, where it will focus, and how it will focus *the "game plan" *competitive advantage: when firm creates more economic value than competitors by engaging in a strategy that is difficult or impossible for others to duplicate -sources: product & process technology, protected & regulated markets, access to capital, economies of scale, your human capital -resource should be: valuable, rare, difficult to imitate, unique

Self Monitoring

*the ability of individuals to read cues from their environment to assess their behavior *high self-monitors (mirrors others, adaptive to change, see environment & social cues -- a chameleon) *low self-monitors (internally focused, same in all situations, rigid) *no right approach/style

Creativity

*the ability to combine or link ideas in new ways to generate novel and useful alternatives a. component of every form of intelligence b. everyone has creative capacity *4 characteristics 1. self confidence and perseverance in the face of obstacles 2. willingness to take risks 3. willingness to grow and openness to new experiences 4. tolerance of ambiguity *evaluate creativity by: fluency (ability to generate many solutions), flexibility, and originality *important bc new ideas are critical to firm's sustainability

Emotional Intelligence

*the capacity for recognizing our own feelings and those of others, for motivating ourselves, and for managing our emotions and relationships in a productive manner *key differentiator between good & great managers *focuses on ways individuals relate/interact with eachother *4 components 1. self-awareness 2. self-management: regulation and motivation 3. social-awareness: empathy and group dynamics 4. relationship-management: combo of 3 others *self/others *awareness/actions *inward --> self-awareness and self-management (regulation & motivation) *outward --> social-awareness, relationship management *important in cross-cultural relationships

Environmental Uncertainty

*the environment is not only constantly changing, the nature of change is frequently difficult to predict *mgmt tries to deal with this by: -environmental scanning -marketing research -competitive intelligence -exerting control

Locus of Control

*the extent to which an individual believes that he or she can control or influence the outcome of events ________________________________ stable | ability | task difficulty| |--------|---------------| unstable | effort | luck/chance | ------------------------- internal external *internal --> growth mindset, self-sufficient, need rewards *external --> need direction, continue to believe in external *impacted by stability (predictability of change over time) & locus of control

Life Cycle of a Firm

*when firm evolves, nature of leadership should fit life cycle stage *start-up: opportunity identification, focus on innovation, access to capital *growth: efficiency, standardization, consolidation and control, protection of the status quo *decline: cost mgmt, realignment, restructuring --> increasing formalization and complexity *organizational flexibility -need to respond to external and internal forces, can also impact these forces and environments -mutual adaption: process by which firms impact nature of their overarching industrial environment and adapt their organization in response to evolving contextual factors *important in change industries *ambidextrous: focus on current & future

Leadership as a Rubberband

-aligned: stretch is appropriate, aligned with personal goals, opportunity to practice new behaviors, some discomfort -misfit: stretch is too far, not aligned with personal goals, requires new identity, feels unauthentic -default: resort to it when stressed, personality & skills & abilities & values & experiences a. self-awareness: an understanding of one's thoughts, feelings, and behaviors b. interpersonal effectiveness: the ability to acknowledge and take responsibility for one's role in cultivating relationships and in communicating effectively with others i. reciprocal relationship ii. Wolfgang Keller case demonstrates how differences in personality can create interpersonal tensions (challenge, avoid, or become irritated when differences arrive)

Be able to:

1. Define a team and use different typologies to describe a team 2. Identify the building blocks of teams 3. Explain what team effectiveness is and what factors contribute to it 4. Use the team framework to diagnose and address potential team problems

Managing Conflict

1. Diagnose the Disagreement a. the nature of difference b. factors that underlie difference c. extent difference has evolved 2. Resolving the Disagreement -communication, focus on interests, separating people from problem -issue: subject of discussion -position: perspective person takes on issue *positions differ because interests differ *interests: underlying reasons or needs of each party *respond, don't react, balance advocacy and inquiry

Strategic Management Process - Step 1

1. Evaluate "Current State" a. clarify p/s, customers, and process/approach b. examine current mission, goals, and plans c. examine stakeholder's expectations -Who (broad/narrow market) -What (small/large range of p/s) -How (unique production approach/delivery process) -strategy cornerstones: mission (why it exists), vision (future, how) -levels of goals & importance --a pyramid *mission statement *strategic - senior mgmt *tactical - middle mgmt *operational - lower mgmt

Team Effectiveness

1. Produce meaningful results for the organization (finished product, met goal, exceed expectations, personal agenda < team goals) 2. Must satisfy all team members (role and contributions values, personal development) 3. Must enhance ability of team members to work well together in the future (shared sense of purpose and mutual trust) 4. Foster collective learning and adaptation

Team Process - 3 Components

1. Purposeful and rigorous decision making a. moving from a variety of possibilities to a decision (divergent --> convergent) b. identify/explore problem, prioritize evaluation criteria, generate solutions, review solutions, complete task 2. Effective participation and meaningful influence a. team should possess empathy (be open/willing) and not have dominance b. common information effect: teams that consider commonly held info to be more important and influential than uniquely held info c. participation: the extent to which individuals engage in the process of generating solutions and articulating their opinions and perspectives **influence: impact individual's perspective has on team process **who, what, when d. blocking behaviors: behaviors that inhibit the team and its members from achieving their objectives (dominating, overanalyzing, stalling, remaining passive, rejecting) e. two factors to increase performance: turn-taking, social sensitivity f. social loafing: disengaging from team process & failing to contribute to team (prevent by carefully choosing good #, clearly define tasks, evaluate all work, make everyone feel needed) 3. Constructive conflict a. extremes are avoiding conflict or embracing it (unproductive affective conflict) b. avoiding conflict = conformity: occurs when people behave in line with a group's expectations/beliefs c. balance team cohesion and constructive conflict

Theoretical Model of Teams - States

1. Team Development -not sequential, teams go through each stage at some point *concern over tasks (y-axis) vs. building relationships (x-axis) - storming performing forming norming 2. Team States -identity: shared sense of collective bond and membership to group (identify w/subgroup, team name) -psychological safety/trust: collective sense that it is safe to speak up without fear or embarrassment or ridicule *teams that lack it conceal weaknesses, hesitate to ask for help, waste time 'faking it', hold grudges, learn less -empowerment/efficacy *empowerment: shared sense that members have authority and responsibility over their work, voice in decisions, capability to achieve goals, produce meaningful results (you're got what it takes) *efficacy: the shared belief that the team is collectively capable of accomplishing its goals and mission -norms: the informal rules and shared expectations that groups establish to regulate the behavior of their members *often unspoken, organic, not easy to change, channels of communication *form in subtle events during formation, as discover functional behaviors, past experiences -cohesion: team that people like to be a part of; member similarity, size, success, difficult entry, external comptetition *problems: groupthink (too concerned with maintaining unanimity, length of lines study in which subject followed group)

Theoretical Model of Teams - Inputs

1. Team Goals -team goal setting allows teams to clarify what constitutes meaningful results for them -advantages: clarity, motivation, energy directed towards idea -characteristics of good goals: specific, difficult, shared, measurable 2. Composition -well functioning teams: members who are individually engaged/motivated, strong interpersonal skills, sufficient in number and proficient in technical skills, possess mutual accountability -people: size 3-11 -composition: demographics, knowledge/capabilities, personalities, motivations, individual goals, values, needs -personality: stable, enduring/engrained pattern, result of genetics & environment *Big 5: OCEAN -leveraging diversity *pros: broader thinking, access to more expertise/info, wider networks for more ideas *cons: lack of commonality in views, loss of speed/efficiency, misunderstandings due to miscommunication or misperceptions *it makes us smarter by promoting hard work/creativity, heavily considering alternatives before action *pain of diversity = pain of exercise; no pin, no gain 3. Structure -vertical differentiation (leadership/status) & horizontal differentiation/specialization (interdependence/roles) -authority/status: authority differentiation; manager-led, self-managing, self-designing, self-governing *status & power dynamics: - creativity, + deference/efficiency, + role differentiation, +/- norms dependent on high status member *ex: traditional symphony orchestra vs. orpheus chamber -interdependence (horizontal structure) *sequential - relay *pooled - efficiency, specialization, chunking *reciprocal - difficult due to redundancy, loss of efficiency -roles *task & relationship (find balance) *team role vs. functional role *source of roles: personality/other differences, experience/role learning, choice/assignment, current task/motivation *task, interpersonal, & boundary spanning roles -tools *contracts (agendas, schedules, norms, roles)

Importance of Skills by Managerial Level

1. at first, technical skills important 2. later, interpersonal skills very important 3. eventually, conceptual skills important

Classical Perspective (1890-1950) - scientific management

1. scientific management: a. emphasizes scientifically determined jobs and management practices as the way to improve efficiency and labor productivity b. Frederick Taylor i. determined management needed to change through scientific study ii. 4 principles: 1. replace rule of thumb methods with those based on scientific studies 2. scientifically select/train/develop employees 3. detailed instruction and supervision of each worker 4. divide work equally between managers and workers (managers focus on scientifically giving work) c. Henry Gantt i. associate of Taylor ii. project management (Hoover Dam, Interstate Highway) iii. gantt chart: bar graph to measure production d. Frank and Lillian Gilbreth i. performance management: assess employee efficiency, task and bonus system, training and development ii. time and motion study: helped with brick layers and surgeons e. Overall: i. managers created standard methods, selected workers with appropriate abilities, trained workers in standard methods, support workers & eliminate interruption, & provide wage incentives ii. contributions: importance of compensation for performance, initiated careful study of jobs/tasks iii. ignored social context and workers needs, robot workers w/no variance, exploitation of profits, boring jobs, workers could purposefully under-perform *time and motion studies *still used today in Apple factories in China, Amazon warehouses, Walmart *video - Dina from Cloud 9: "big brother" always watching, workers learned to cheat system *video - General Motors vs. Toyota: GM had efficiency but not effectiveness, Toyota had lean management, motivated employees, stop button on assembly line (learned how to marry scientific mgmt & humanistic perspective)

Strategic Management Process - Step 2

2. Internal/External Environment Analysis -internal: what skills/uniqueness would company bring to market? -analysis: core competence, value chain analysis, SW -external: is industry attractive and for what kind of players? -analysis: supply/demand, Porter's 5 factors, OT ---------------------------------- -SWOT analysis *strengths, weaknesses, opportunities, threats --> ?'s to ask for SWOT -Core internal capabilities set apart? -Unique selling proposition or competitive advantage? -Internal vulnerable areas? -Capabilities that need to develop? -What ways is external context changing? -What O/T do these changes present? --> strategic flexibility: capability to identify and react to changes in the external environment and to mobilize internal resources to deal with those changes -internal environment affects strategy *resource-based view of firm: competitive advantage through resources --core competencies 1. tangible: factories, machinery, warehouses 2. intangible: trademarks, patents, intellectual property 3. human resources: employees of all levels -firm as a value chain *value chain analysis: systematic way of examining all of the activities a firm performs and determining how they interact to form a source of competitive advantage *value systems: manager study how firm uses resources to develop more core competencies, compare value chains with others to improve, view as larger system w/ suppliers & distribution channels *support activities: provide the support necessary for the primary activities to occur -firm infrastructure, human resource management, technological development, procurement *primary activities: involved in the physical creation of the product and its sale/transfer to buyer -inbound logistics, operations, outbound logistics, marketing & sales, service ----------------------------------- *external environment analysis: *Porter's 5 Forces: five forces impact on industry profitability -increase: high barriers, limited competitors, lack of subs, low buyer/supplier power 1. Bargaining Power of Suppliers -broad group -first-mover advantage: firm is first to offer desirable p/s that secure customer loyalty -characteristics of powerful supplier group: 1. supplier industry more concentrated than industry it sells to 2. buyer industry participants face switching costs in changing suppliers 3. no substitutes exist for what supplier provides 4. supplier group can threaten to integrate forward 5. supplier group does not depend heavily on industry 2. Threat of New Entrants -depends on barriers to entry and reaction from existing competitors a. supply-side economies of scale: produce/sell large volumes to lower production costs b. demand-side benefits of scale: product benefits arise when willingness to pay increases as other buy product c. customer switching costs: fixed costs buyers encounter if they change supplier d. capital requirements: huge expenditures like fixed facilities, customer credit, inventories, start-up losses e. incumbency advantages independent of size: cost/quality advantages f. restrictive gov policy: license requirements, patents, foreign barriers, limit of material access 3. Bargaining Power of Customers -characteristics of customer group 1. concentrated and purchases in large volumes relative to supplier 2. seller's products undifferentiated 3. buyer's face few switching costs in changing vendors 4. buyers could integrate back 4. Threat of Substitutes -substitute: competitor's product satisfies consumer's needs -limits profit potential through price ceiling 5. Rivalry Among Existing Competitors -conditions that promote intense rivalry/price competition: p/s lack differentiation, fixed costs high, must be expanded in large increments, product is perishable, numerous competitors w/equal size/power, exit barriers high ---------------------------------- *key facts/ideas: -barriers to entry: factors that make it costly for potential competitors to enter market *depend on lifecycle of industry *low barriers, encourage competition, less profitability *limits of 5 forces model -helps before/during/after to understand market structural components -con: only looks at a snapshot in time

Strategic Management Process- Step 3, 4, 5, 6

3. Define Mission/Goals -analyze gaps 4. Identify Strategies -business, corporate -business strategy: a. cost leadership: low price to broad audience -trade-offs centered on price and features -economies of scale: cost savings achieved when volume of a produce produced by firm enables it to reduce per unit costs b. differentiation: unique in industry along dimension(s) that are valued by consumers -consumers willing to pay premium price -reduce frill activities c. focus: specific geographical region, specific group of purchasers, or specific product type -low-cost focus, target cost-conscious consumers who've been underserved -differentiation focus, differentiate within industry and lower costs elsewhere *stuck in the middle: disadvantage in long-run, some success online *employees in generic strategies: cost-leadership = discipline/detail/efficiency, differentiation = innovation/risk 5. Implement Strategy via Changes in: -structure -human resources -info & control systems 6. Monitor Progress

Multiple Intelligences

Howard Gardner a. 1983 book "Frames of Mind" rejected notion of single type of intelligence bc its poor indicator of success b. 8 indicators of career success --> linguistic, math, spatial, kinesthetic, musical, interpersonal, intrapersonal, naturalist c. preferences in careers differ based on type **brain: left-side logic, right-side art

Management vs. Leadership

Mgmt: working with/through a group to accomplish a desired goal/objective in an efficient and effective manner (plan, organize, problem solve) Leadership: drive change and innovation through inspiration and motivation *as time goes on, leadership becomes more important *they are complementary

Managing Oneself

Peter Drucker proposed questions for 50 years of life: -What are my strengths? **improve strengths & weaknesses to point -How do I perform? **this or that -What are my values? **org & personal values aligned -Where do I belong? **use first 3 questions to know -What should I contribute? *situation requirements? *greatest contributions given personal strengths? *results needed to make difference? *eventually, course of action will become clear

Video: Ford & Taylor

Taylor's principles in action: 1. Rule of thumb replaced with assembly line 2. Selected mover-man and typing woman were studied in order to increase their productivity 3. Employees treated like robots --> hired if fast and listened, but many quit because of inhumanity (quickly came back when provided with incentives -- major part of classical perspective)

Management Pyramid

^ management of strategy / \ management of others / \ management of self

Drivers of Organizational Performance

efficiency + effectiveness = productivity efficiency: least amount of time possible with least amount of resources possible effectiveness: how well it's done, if it reaches goal, right direction, people's wants met

Strategy Framework

external (industry, customer, supplier, competitor analysis) + internal (assess goals, internal resources, culture, employees, capabilities) = vision/mission = objectives = strategy formulation = strategy implementation (select industries to compete in, core competencies/unique activities, make trade-offs, fit among activities) 1. The Purpose of a Business** -goal: an organizationally desired result, product, or end state -Milton Friedman: goal is to make profits (ethically*) 2. Analyzing the Internal and External Environments of Firm -internal: goals, resources, competencies -must understand stakeholders & their power to adjust accordingly -core competencies: a network of unique activities that strategically fit together and are difficult to replicate 3. Vision, Mission, Objectives -vision: a concept of picture of what a firm wants to achieve -mission: the activities a firm performs for its customers -mission statement: statement defines the reason for firm's existence *can define purpose, motivate, give direction, be a focal point, assist in trade-offs -objectives: series of quantifiable milestones or benchmarks to help assess progress -strategy formulation: process of identifying how a firm can best align its resources to carve out a defensible position in the marketplace -tactics: the actions a firm takes to enact its strategy 4. Strategy Formulation -planned development (assessment of internal/external environments by a top-down process) -emergent development (reassessing strategy, objectives, tactics on an ongoing basis, bottom-up process) -not usually linear fashion, evolves over time -external environment requires constant scanning -some aspects constant for long, others change frequently, others simple/complex -firms have very stables strategies in mature industries -choices to make for strategies: range of products/services, how firm should position itself in marketplace, scale/scope of operations, organizational structure, how to measure success *these are mutually reinforcing

Early Dawn of Management Thought

industrialization --> mass production (craft vs. factory method) --> division of labor and job specialization *division of labor provides managers with greatest opportunity to increase productivity *large, complex orgs required new approaches to coordination and control

Best Self Exercise

phase 1 a. identify potential respondents --> choose honest people, mix of people b. request stories c. write own stories d. analyze all stories (read and reflect on each story, then analyze in aggregate) e. compose reflected best-self portrait phase 2 a. analyze context: list enablers and blockers b. create an action plan

Pillars of Management

strategic position, organizational design, and individual leadership *big picture --> individual action *all interplay with eachother

Business Environment

the combination of all contextual forces and elements in the external and internal environments of a firm *managerial --> shareholder --> stakeholder *managerial view (production): firm is seen as a mechanism for converting raw materials into products to sell to customers *shareholder view (performance): the job of top managers is to produce the highest possible stock market valuation of the firm's assets *stakeholder view (multiple constituencies): identifies and analyzes multiple groups that interact with the firm and attempts to align organizational practices to satisfy the needs of these various groups --> best for complex environment, changes depending on firm's point in life cycle