MGT 300: EXAM 2 Vocabulary
how to stand out in a new job
-be aware of the power of first impressions -come in 30 minutes early and stay a little late to see how people behave -get to know some people and listen to what they have to say -make it easy for others to give you feedback -over-deliver
strategic planning is done by what kind of manager
-by top manager -they determine what the organization's long-term goals should be for the next 1-5 years with the resources they expect to have available -requires visionary and directional thinking, says one authority. It should communicate not only general goals about growth and profits, but also ways to achieve them.
the mission statement
-expresses the purpose or reason for being. -determined by top management and board of directors - they formulate a mission statement - expresses the purpose of the organization
management by objectives: the 4-step process for motivating employees
-first suggested by peter drucker in 1954 -management by objectives has spread largely because of the appeal of its emphasis on converting general objectives into specific ones for all members of an organization.
predicting future employee needs
-the staffing the organization might need -the likely sources for staffing
Forces Originating Outside the Organization
1. Demographic Characteristics Earlier we discussed the demographic changes occurring among U.S. workers, with the labor force becoming more diverse. Example: For the first time since 1880, Americans ages 18 to 34 (Millennials) are more likely to be living with their parent(s) than in a household shared with a spouse or partner. 2. Technological Advancements Technology is not just computer technology; it is any machine or process that enables an organization to gain a competitive advantage in changing materials used to produce a finished product. 3. Shareholder, Customer, and Market Changes Shareholders have begun to be more active in pressing for organizational change. Example: Some shareholders may form a B corporation, or benefit corporation, in which the company is legally required to adhere to socially beneficial practices, such as helping consumers, employees, or the environment. 4. Social and Political Pressures Social events can create great pressures. Example: Poor diet choices, such as reliance on sugary sodas, have led to more than one in three U.S. adults and one in six children from ages 2 to 19 being obese, which in turn has contributed to an epidemic of type 2 diabetes
3 causes of resistance to change
1. Employee characteristics. 2. Change agent characteristics. 3. The change agent-employee relationship.
Three Factors to Be Considered in Designing an Organization's Structure
1. Environment—mechanistic versus organic. 2. Environment—differentiation versus integration. 3. Link between strategy, culture, and structure.
steps to planning & strategic management:
1. Establish the mission and vision 2. Assess the current reality 3. Formulate the grand strategy and strategic, tactical, and operational plans 4. Implement the strategy 5. Maintain strategic control
Two Myths about Innovation
1. Innovation happens in a "Eureka!" moment -most innovation is the product of had work and dedication 2. Innovation can be systematized - there is no standardized process to achieve success - through success is unpredictable, cultural conditions can increase the likelihood of success
order of the approach to planning
1. Mission Statement -what is our reason for being? 2. Vision Statement -what do we want to become? 3. Values Statement -what values do we want to emphasize? 4. Strategic Planning -done by top managers, for the next 1-5 years 5. Tactical Planning -done by middle managers for the next 6-4 months 6. Operational Planning -done by first-line managers. for the next 1-52 weeks
4 types of innovation
1. Product- new product or services 2. Process- operations, finance, or human resources 3. Marketing- promotion, pricing, distribution, packaging 4. Management- improving way organization is managed
seven implementation priciples
1. Treat your organization as an unfinished prototype. Leaders need to think and act as if their organization were an unfinished prototype that won't be ruined by dangerous new ideas or impossible to change because of employee or management resistance. 2. No brag, just facts. This slogan is an antidote for over-the-top assertions about forthcoming products 3. See yourself and your organization as outsiders do. Most managers are afflicted with "rampant optimism," 4. Evidence-based management is not just for senior executives. The best organizations are those in which everyone, not just the top managers, is guided by the responsibility to gather and act on quantitative and qualitative data and share results with others. 5. Like everything else, you still need to sell it. "Unfortunately, new and exciting ideas grab attention even when they are vastly inferior to old ideas," 6. If all else fails, slow the spread of bad practice. Because many managers and employees face pressures to do things that are known to be ineffective, it may be necessary for you to practice "evidence-based misbehavior"—that is, ignore orders you know to be wrong or delay their implementation. 7. The best diagnostic question: What happens when people fail? "Failure hurts, it is embarrassing, and we would rather live without it," the authors write. "Yet there is no learning without failure. . . .
4 types of organizational culture
1. clan 2. adhocracy 3. market 4. hierarchy
4 types of workplaces
1. closed shop 2. union shop 3. agency shop 4. open shop
2035
A recent report by the consulting firm Accenture calls artificial intelligence "a new factor of production," alongside the traditional factors of labor, capital, entrepreneurship, and natural resources, and predicts that by 2035 its increasing use will boost labor productivity by up to 40% and double economic growth.
big data
A recent study says the store of the world's information will reach 163 zettabytes in size by 2025, 60 percent of which will be generated and managed by businesses. Big Data analytics is the process of examining large amounts of data of a variety of types to uncover hidden patterns, unknown correlations, and other useful information. Among some of the uses of Big Data analytics are the following: Analyzing consumer behavior and spurring sales. Improving hiring and human resource management. Tracking movie, music, TV, and reading data.
change agent
Often OD is put into practice by a person known as a change agent, a consultant with a background in behavioral sciences who can be a catalyst in helping organizations deal with old problems in new ways.
innovation strategy
Often a growth strategy takes the form of an innovation strategy, growing market share or profits by innovating improvements in products or services (as in using an e-business approach in calculatedly disseminating information).
strategy implementation
Putting strategic plans into effect Strategic planning isn't effective, of course, unless it can be translated into lower-level plans. This means that top managers need to check on possible roadblocks within the organization's structure and culture and see if the right people and control systems are available to execute the plans. *Strategic implementation is essential for success and is considered to elicit the greatest challenge for managers
ineffective responses to a decision situation
Relaxed Avoidance Manager takes no action believing that no significant negative consequences will result Relaxed Change Manager, understanding that something must be done, opts for the first available option that involves low risk Defensive Avoidance Manager, unable to find a good solution, either procrastinates, openly allows someone else to make the decision, or denies the risk of any negative consequences Panic Manager franticly divests the problem because she/he cannot deal with the situation
benefits of planning
Helps you check on progress Helps you coordinate activities Helps you think ahead Helps you cope with uncertainty Helps you check on progress Helps you coordinate activities Helps you think ahead Helps you cope with uncertainty
cons to AI
In addition to the risk of errors noted above and the practical challenges that remain in making AI practical and reliable, these and other observers worry that AI can be put to malicious uses.
rites and rituals
Rites and rituals are the activities and ceremonies, planned and unplanned, that celebrate important occasions and accomplishments in the organization's life.
how to become a better receiver of feedback
Step 1: Identify Your Tendencies Step 2: Engage in Active Listening Step 3: Resist Being Defensive (occurs when people perceive they are being attacked or threatened) Step 4: Ask for Feedback Step 5: Practice Being Mindful (Mindfulness is "the awareness that emerges through paying attention on purpose, in the present moment, and nonjudgmentally to the unfolding of experience moment by moment)
3. Climate of Mistrust
Trust involves reciprocal faith in others' intentions and behavior. Mistrust encourages secrecy, which causes deeper mistrust, putting even well-conceived changes at risk of failure. Managers who trust their employees make the change process an open, honest, and participative affair. All told, employees who feel fairly treated by managers during change are less likely to resist
revitalizing organiztions
Information technology is wreaking such change that nearly all organizations these days are placed in the position of having to adopt new behaviors in order to resist decline. OD can help by opening communication, fostering innovation, and dealing with stress.
bargaining power of buyers
Informed customers become better negotiators.
Physical Design
There is constant experimenting to find the best office layout that will encourage employee productivity and send a strong message about the culture.
for-profit organizations
These are formed to make money, or profits, by offering products or services.
nonprofit organizations
These are formed to offer services to some clients, not to make a profit (examples: hospitals, colleges)
mutual-benefit organizations
These are voluntary collectives whose purpose is to advance members' interests (examples: unions, trade associations)
how OD organizational development works
They approach the organization as if it were a sick patient, using diagnosis, intervention, and evaluation—"diagnosing" its ills, "prescribing" treatment or intervention, and "monitoring" or evaluating progress 1. diagnosis 2. intervention 3. evaluation 4. feedback
decentralized authority
important decisions are made by middle-level and supervisory-level managers. Here, obviously, power has been delegated throughout the organization
bullying
is repeated mistreatment of one or more persons by one or more perpetrators; it is abusive physical, psychological, verbal, or nonverbal behavior that is threatening, humiliating, or intimidating. Men account for 70 percent of workplace bullies, and women are 65 percent of the targets. Women are the bullies only 30 percent of the time, but most of their targets (67 percent) are also women Unfortunately, many workplace bullies are quite charming and manipulative and so receive positive evaluations from their supervisors and achieve high levels of career success, according to one study. *** bosses are reported to be 61 percent of all workplace bullies
innovation
is the creation of something new that makes money; it finds a pathway to the consumer." This definition underscores that innovations must be both novel and useful.
innovative change
is the introduction of a practice that is new to the organization. This form of change is characterized by moderate complexity, cost, and uncertainty. It is therefore apt to trigger some fear and resistance among employees.
delegation
is the process of assigning managerial authority and responsibility to managers and employees lower in the hierarchy
strategy formulation
is the process of choosing among different strategies and altering them to best fit the organization's needs. Formulating strategy is a time-consuming process both because it is important and because the strategy must be translated into more specific strategic plans, which determine what the organization's long-term goals should be for the next one to five years.
decision making
is the process of identifying and choosing alternative courses of action.
recruiting
is the process of locating and attracting qualified applicants for jobs open in the organization
adaptive chang
is the reintroduction of a familiar practice—the implementation of a kind of change that has already been experienced within the same organization. This form of change is lowest in complexity, cost, and uncertainty. Because it is familiar, it is the least threatening to employees and thus will create the least resistance.
The Hindsight Bias: The I-Knew-It-All-Along Effect
is the tendency of people to view events as more predictable than they really are, as when at the end of watching a game we decide the outcome was obvious and predictable, even though in fact it was not.
"not to decide....
is to decide"
job analysis
is to determine, by observation and analysis, the basic elements of a job
cost-focus strategy
is to keep the costs, and hence prices, of a product or service below those of competitors and to target a narrow market. This is a strategy often executed with low-end products sold in discount stores, such as low-cost beer or cigarettes, or with regional gas stations, such as the Terrible Herbst, Rotten Robbie, and Maverik chains in parts of the West. Red Box, originally a kiosk-based video rental company, has added an on-demand streaming service with low costs. But, says one analyst, "The upside is similarly limited, since the appeal will mainly be to its existing kiosk customers."76 Needless to say, the pressure on managers to keep costs down is even more intense than it is with those in cost-leadership companies.
The Confirmation Bias: Seeking Information to Support Your Point of View
occurs when people seek information to support their point of view and discount data that do not support it. Though this bias is so obvious you may think it should be easy to avoid, we practice it all the time, listening to the information we want to hear and ignoring the rest.
develop action plan
once objectives are set, employees are encouraged to prepare an action plan for attaining them.
without plans, managers would:
only focus on what's in front of them, not focusing on the future & would be swept up by competition surprising them ex: internet trend becoming a threat to companies. Amazon to borders bookstores, uber to taxi cabs, etc.
Treacy and Wiersema's Strategy Framework
operational excellence (cost) customer intimacy (service) product leadership (innovation)
current reality assessment
or organizational assessment, to look at where the organization stands and see what is working and what could be different so as to maximize efficiency and effectiveness in achieving the organization's mission. Among the tools for assessing the current reality are SWOT analysis, VRIO analysis, forecasting, and benchmarking, all of which we discuss in Section 6.3. Macy's is a good example of a firm whose current reality has radically changed.
proactive change
or planned change, involves making carefully thought-out changes in anticipation of possible or expected problems or opportunities
long-term goal
or strategic goals. they tend to span 1-5 years and focus on achieving the strategies identified in a company's strategic plan. ex: increase revenue from new customers by 10% over the next 12 months.
functional structure
people with similar occupational specialties are put together in formal groups based off of similar work specialties
3 types of objectives used in MBO: performance, behavioral, and learning
performance objectives -focus: express the objective as an outcome or end-result behavioral objectives -focus: express the objective as the behaviors needed to achieve an outcome learning objectives -focus: express the objective in terms of acquiring knowledge or competencies. based on G. Latham, G. Seijts, and J. Slocum, "The Goal Setting and Goal Orientation Labyrinth: Effective Ways for Increasing Employee Performance,"
inputs "Why Should We Change, and How Willing and Able Are We to Change?" readiness for change
is defined as the beliefs, attitudes, and intentions of the organization's staff regarding the extent of the changes needed and how willing and able they are to implement them Readiness has four components: (1) how strongly the company needs the proposed change, (2) how much the top managers support the change, (3) how capable employees are of handling it, and (4) how pessimistic or optimistic employees are about the consequences of the result
intuition
is making a choice without the use of conscious thought or logical inference.24 Intuition that stems from expertise—a person's explicit and tacit knowledge about a person, a situation, an object, or a decision opportunity—is known as a holistic hunch. Intuition based on feelings—the involuntary emotional response to those same matters—is known as automated experience.
target dates
deadline dates when they are to be attained.
the simple structure
for the small firm very early, entrepreneurial stages authority centralized in a single person, a flat hierarchy, few rules, and low work specialization more than 80% of employing organizations have few than 19 employees - authority centralized in a single person; low work specialization ; flat hierarchy
3 types of organizations
for-profit, nonprofit, mutual-benefit
culture at SAS
free m&m's every wednesday grew to more and more perks 50,000 fitness center amenities keep SAS employees happy business software if employees are happy, they make customers happy refuses to go public for shareholders daycare program - a 1/3 of the price of other daycares SAS medical staff for whole family keep employees content and from leaving 3% of employee turnover vs industry standard of 20% saved $60-80 million dollars by reducing turnover teaches business model at stanford
free for all , profit some
free search engines free email digital age - giving it away is becoming the new business structure business profit by giving things away for free subsidies many free is the best way to advertising 73% chose truffle 15c 1c kisses when hershey kiss was free, everyone went to hershey kiss irrational decision when something is free youtube does not make money but it makes profit through google 4 billion google forces you to look at free economy - exception that proves or breaks the rule newspaper industry wall street journal $100 subscription basis times forced to make website free again newspaper losing followers as well free is a powerful marketing tactic does not go far enough to power our whole economy
How an Organization's Culture & Structure Are Used to Implement Strategy
"A leader's job is to help inspire every employee to help execute strategy," This requires consistently and constantly demonstrating, celebrating, and modeling the cultural traits that reinforce strategy
preventing groupthink
- allow criticism - allow other perspectives
mechanistic organization
- by Tom Burns and G. M. Stalker When Rigidity and Uniformity Work Best authority is centralized, tasks and rules are clearly specified, and employees are closely supervised
operational planning
- by first-line manager -determine how to accomplish specific tasks with available resources within the next 1-52 weeks.
Aligning strategy, culture, and structure
-Organizational culture and organizational structure should be aligned with its vision and strategies. -If managers change the strategy of the organization, they need to change the culture and structure to support it. -Similarly, as companies grow, the culture and structure need to grow with it.
strategic management
-a process that involves managers from all parts of the organization in the formulation and the implementation of strategies and strategic goals. This definition doesn't mean that managers at the top dictate ideas to be followed by people lower down. Indeed, precisely because middle managers in particular are the ones who will be asked to understand and implement the strategies, they should also help to formulate them. involves managers from all parts of the organization—top managers, middle managers, and first-line managers—in the formulation, implementation, and execution of strategies and strategic goals to advance the purposes of the organization. Thus, planning covers not only strategic planning (done by top managers), but also tactical planning (done by middle managers) and operational planning (done by first-line managers).
operating plans
-turn strategic plans into actionable short-term goals -break long-term output into short-term targets or goals.
Forces Originating Inside the Organization
1. Human Resources Concerns Is there a gap between the employees' needs and desires and the organization's needs and desires? Job dissatisfaction—as expressed through high absenteeism and turnover—can be a major signal of the need for change. Organizations may respond by addressing job design, reducing employees' role conflicts, and dealing with work overload, to mention a few matters. 2. Managers' Behavior
the 3 core processes of business
1. People 2. Strategy 3. Operations
what makes it hard to be evidence based
1. There's too much evidence 2. There's not enough good evidence 3. The evidence doesn't quite apply 4. People are trying to mislead you 5. You are trying to mislead you 6. The side effects outweigh the cure 7. Stories are more persuasive anyway
compensation
3 parts (1) wages or salaries, (2) incentives, and (3) benefits
realistic job previews
A realistic job preview (RJP) gives a candidate a picture of both positive and negative features of the job and the organization before he or she is hired. This recruiting technique is very effective at reducing turnover within 30-90 days of employment.
stories, legends, and myths
A story is a narrative about an actual event that happened within the organization and that helps to symbolize its vision and values to employees.
5. Loss of Status or Job Security
Administrative and technological changes that threaten to alter power bases or eliminate jobs—as often happens during corporate restructurings that threaten middle-management jobs—generally trigger strong resistance.
The Behavioral Style: The Most People-Oriented Decision Makers
Although they like to hold meetings, some people with this style have a tendency to avoid conflict and to be concerned about others. This can lead them to adopt a wishy-washy approach to decision making and to have a hard time saying no.
1. background information
Application Forms, Résumés, and Reference Checks such as citizenship, education, work history, and certifications
traditional designs
Simple, Functional, Divisional, & Matrix Structures
integration
When Forces Pull the Organization Together is the tendency of the parts of an organization to draw together to achieve a common purpose.
differentiation
When Forces Push the Organization Apart is the tendency of the parts of an organization to disperse and fragment.
Organic Organizations
When Looseness and Flexibility Work Best authority is decentralized, there are fewer rules and procedures, and networks of employees are encouraged to cooperate and respond quickly to unexpected tasks.
related diversification
When a company purchases a new business that is related to the company's existing business portfolio, the organization is implementing
organizational change
any alteration of people, structure, or technology in an organization 70% of change efforts FAIL
devil's advocacy
assigns someone the role of critic.
ten reasons why employees resist change
below
How companies foster innovation
create an innovation strategy get commitment from top managers foster an innovation culture and climate establish the required structure and processes obtain the necessary human capital institute the necessary human resources policies, practices and procedures obtain the appropriate resources
rational decision making stage 2 think up alternative solutions
creativity from employees "Creativity precedes innovation, which is its physical expression," says Fortune magazine writer Alan Farnham. "It's the source of all intellectual property."19
AI doesn't have what
devoid of common sense -paul allen
defenders
expert at producing and selling narrowly defined products
product divisions
group activities around similar products or services
Hierarchy Culture: A Structured Culture Valuing Stability and Effectiveness
hierarchy culture has an internal focus and values stability and control over flexibility formalized, structured work environment Companies with this kind of culture are apt to have a formalized, structured work environment aimed at achieving effectiveness through a variety of control mechanisms that measure efficiency, timeliness, and reliability in the creation and delivery of products.
does strategic management work for small as well as large firms?
increased small business performance, although many small business owners do not engage in strategic planning
employee characteristics
individual differences of actions and inactions, and perceptions of change
decision tree
is a graph of decisions and their possible consequences; it is used to create a plan to reach a goal
The Overconfidence Bias: Blind to Our Own Blindness
is the bias in which people's subjective confidence in their decision making is greater than their objective accuracy.
responsibility
is the obligation you have to perform the tasks assigned to you.
benefits
or fringe benefits, are additional nonmonetary forms of compensation designed to enrich the lives of all employees in the organization, which are paid all or in part by the organization
The Sunk-Cost Bias: Money Already Spent Seems to Justify Continuing
or sunk-cost fallacy, occurs when managers add up all the money already spent on a project and conclude it is too costly to simply abandon it. wasting money
short-term goal
or tactical or operational goals. just plain goals. they typically span 12 months nd are connected to strategic goals in a hierarchy known as a means-end chain.
planning
setting goals and deciding how to achieve them. -coping with uncertainty by formulating future courses of action to achieve specified results
Strategic planning
should communicate general goals and ways to achieve them requires visionary and directional thinking
means-end chain
shows how goals are connected or linked across an organization ex: low-level goal such as responding to customer inquiries in less than 24 hrs in the means to accomplishing a higher-level goal of achieving 90% customer satisfaction
cash cows
successful but slow-growing units
How employees learn culture
symbols, stories, heroes, rites and rituals, and organizational socialization
analytics and evidence-based decisions
types of Data Organizations Analyze to Make Decisions •Financial (e.g. profit and loss, revenue, expenses, etc.) •Marketing (e.g. impressions, segment penetration, etc.) •Logistics (e.g. unit availability throughout supply chain, etc.) •Human Resources/People-Management Data •Staffing performance (e.g. time to fill, cost per hire, etc.) •Leadership performance (e.g. employee engagement, retention, etc.) •Training performance (e.g. post -training performance, training cost per attendee, etc.) •Compensation management, employee relations, litigation, benefits administration and management, etc.
value
"Does the resource or capability allow your firm to exploit an opportunity or neutralize a threat?"
AI will raise what
"Economic theory suggests that AI will substantially raise the value of human judgment
negative effects of feedback
"Feedback is the breakfast of champions," according to author, consultant, and management expert Dr. Blanchard. Blanchard is telling us that feedback is essential for success at any endeavor. The problem, however, is that people are not very good at either giving or receiving feedback, even though we continuously engage in these activities. A team of researchers found, for example, that individual performance decreased 38 percent of the time after receiving feedback
3 levels of organizational culture
(1) observable artifacts (2) espoused values (3) basic assumptions
porter's four competitive strategies
(also called four generic strategies) are (1) cost-leadership, (2) differentiation, (3) cost-focus, and (4) focused-differentiation. The first two strategies focus on wide markets, the last two on narrow markets. Time Warner, which produces lots of media and publications, serves wide markets around the world. Your neighborhood video store (if one still exists) serves a narrow market of just local customers.
Danny is participating with other managers in a discussion about what his organization's goals should be for the next decade. He is participating in
-
becoming more adaptable
- Focus on Being Optimistic - Display a Proactive Learning Orientation - Be More Resourceful - Take Ownership and Accept Responsibility - Expand Your Perspective by Asking Different Questions
desirable characteristics of orientation
- The job routine - The organization's mission and operations - The organization's work rules and employee benefits
tactical planning is done by what kind of manager
- by middle manager -determine what contributions their departments or similar work units can make with their given resources during the next 6-24 months.
four approaches to problem solving
- strive for consensus - brainstorming - delphi technique - computer-aided decision making
importance of culture
-An organization's culture matters -Employees are happier with clan cultures -Elements of these cultures can be used to boost innovation and quality -Changing the organizational culture won't necessarily boost financial performance (but it might) -Market cultures tend to produce better results
benefits of intuition
-Expedites decision making -Improves the decision in some way -Facilitates personal development -Promotes decisions compatible with company culture drawback, makes it difficult to convince others of your hunch
the importance of deadlines
-deadlines can mislead you into focusing too much on immediate results and thereby ignoring overall planning—just as students will focus too much on preparing for a test in one course while neglecting others. -deadlines can help you keep your eye on the "big picture" while simultaneously paying attention to the details that will help you realize the big picture. -can help concentrate the mind, so that you make quick decisions rather than put them off. -help you ignore extraneous matters (such as cleaning up a messy desk) in favor of focusing on what's important—realizing the goals on time and on budget. -provide a mechanism for giving ourselves feedback.
steps to planning
-determine your "goal or wish" - purpose. -an organization's purpose- mission. -managers ideas of where they want the organization to go - the vision. both the mission and vision should express the organization's values.
drivers and flow of organizational culture
1. drivers of culture 2. organizational culture 3. organizational structure and internal processes 4. group and social processes 5. work attitudes and behaviors 6. overall performance
maintaining strategic control
1. engage people 2. keep it simple 3. stay focused 4. keep moving
effectiveness of organization development OD
1. multiple interventions OD success stories tend to use multiple interventions. Goal setting, feedback, recognition and rewards, training, participation, and challenging job design have had good results in improving performance and satisfaction 2. management support OD is more likely to succeed when top managers give the OD program their support and are truly committed to the change process and the desired goals of the change program 3. goals geared to both short and long-term results Change programs are more successful when they are oriented toward achieving both short-term and long-term results. Managers should not engage in organizational change for the sake of change. Change efforts should produce positive results 4. OD is affected by culture OD effectiveness is affected by cross-cultural considerations. Thus, an OD intervention that worked in one country should not be blindly applied to a similar situation in another country
the (4) components of the management process (4 management functions)
1. planning 2. organizing 3. leading 4. controlling
types of standing plans (3):
1. policy - outlines general response to a designated problem or situation 2. procedure - outlines response to particular problems or circumstances 3. rule - designAtes specific required action
types of single-use plans (2):
1. program - encompasses a range of projects or activities 2. project - has less scope and complexity than a program
The Horizontal Specialization: Who Specializes in What Work
A glance to the left and right on the line of an organization chart shows the horizontal specialization, the different jobs or work specialization.
heroes
A hero is a person whose accomplishments embody the values of the organization.
stories
A story is a narrative based on true events, which is repeated—and sometimes embellished upon—to emphasize a particular value.
evaluation how well has the intervention worked?
An OD program needs objective evaluation to see if it has done any good. Answers may lie in hard data about absenteeism, turnover, grievances, and profitability, which should be compared with earlier statistics questionnaires, surveys, interviews, and the like to assess changes in employee attitudes.
measurable and controllable activities
An organization's leaders can pay attention to, measure, and control a number of activities, processes, or outcomes that can foster a certain culture.
brainstorming
Brainstorming is a technique used to help groups generate multiple ideas and alternatives for solving problems
who is most likely to be ousted for ethical violations?
CEOs are, such cases are accounting for an increasing share of corporate successions at some of the largest publicly owned companies in the world, especially in the united states and canada. he Harvard Business Review suggests five reasons for this trend: (1) the public is "less forgiving" of poor behavior by executives, (2) regulations are more stringent, (3) companies are expanding operations into developing countries where ethical risks may be higher and laws less protective, (4) digital communications increase exposure to risk from both hackers and whistle-blowers, and (5) "the 24/7 news cycle and the proliferation of media in the 21st century publicizes and amplifies negative information in real time.
peers and subordinates
Co-workers, colleagues, and subordinates may well see different aspects of your performance. shouldn't be used for evaluation.
drug and alcohol tests
Companies are permitted to test job applicants for drug and alcohol use before making an offer, contingent to making an offer, and randomly after hiring, depending on state law cannot be tested secretly
managing conflict
Conflict is inherent in most organizations. Sometimes an OD expert, perhaps in the guise of an executive coach, can help advise on how to improve relationships within the organization.
6. Peer Pressure
Even people who are not themselves directly affected by impending changes may actively resist in order to protect the interests of their friends and co-workers.
execution
Execution: The Discipline of Getting Things Done. they say, is not simply tactics; it is a central part of any company's strategy. It consists of using questioning, analysis, and follow-through to mesh strategy with reality, align people with goals, and achieve results promised. In implementing strategy and maintaining strategic control, what we are talking about is effective execution. Larry Bossidy, former CEO of AlliedSignal (later Honeywell), and Ram Charan, a business adviser to senior executives, are authors of Execution: The Discipline of Getting Things Done.
traits comprising intuition
Expertise: a person's explicit and tacit knowledge about a person, situation, object, or decision opportunity •Automated experience: the involuntary emotional response to those same matters
unity of command
Finally, a principle stressed by early management scholars was that of unity of command, in which an employee should report to no more than one manager in order to avoid conflicting priorities and demands.
Law of unintended consequences
Give it more time. You need to make sure employees, customers, and so on have had enough time to get used to the new action. Change it slightly. Maybe the action was correct, but it just needs "tweaking"—a small change of some sort. Try another alternative. If Plan A doesn't seem to be working, maybe you want to scrap it for another alternative. Start over. If no alternative seems workable, you need to go back to the drawing board—to stage 1 of the decision-making process.
six seeds of innovation
Hard work in a specific direction Hard work with direction change Curiosity Wealth and money Necessity Combination of seeds
hedgehog principle
Hedgehog Principle "Good to Great: why some companies make the leap... and others don't" -Jim Collins "Hedgehog Principle" focus on one big thing -a combination of what you are deeply passionate about, what you can be the best in the world at and what drives your economic engine
orientation
Helping Newcomers Learn the Ropes helping the newcomer fit smoothly into the job and the organization.
minority dissent
In general, group decision making is more effective when members feel that they can freely and safely disagree with each other. This belief is referred to as minority dissent, dissent that occurs when a minority in a group publicly opposes the beliefs, attitudes, ideas, procedures, or policies assumed by the majority of the group.166 Minority dissent is associated with increased innovation within groups
1) The marketplace is becoming more segmented and moving toward more niche products
In the recent past, managers could think in terms of mass markets—mass communication, mass behavior, and mass values. Now we have "demassification," with customer groups becoming segmented into smaller and more specialized groups responding to more narrowly targeted commercial messages. - marketing messages shaped by AI allowing bots to engage with individual targeted consumers and groups which helps to create relationships that result in loyal customers and repeat business.
4. Fear of Failure
Intimidating changes on the job can cause employees to doubt their capabilities. Self-doubt erodes self-confidence and cripples personal growth and development.
8. Personality Conflicts
Just as a friend can get away with telling us something we would resent hearing from an adversary, the personalities of change agents can breed resistance.
operating plan
Larry Bossidy, former CEO of both Honeywell International defines an operating plan as: -a plan that "breaks long-term output into short-term targets or goals. -operating plans turn strategic plans into actionable short-term goals and action plans
Role Modeling, Training, Coaching
Many companies provide structured training to provide an in-depth introduction to their organizational values.
example: new barbies
Mattel, maker of Barbie, is adding tall, petite, and curvy dolls to its product line. also coming out with an inexpensive 3D printer for children to create toys of their choosing
dismissal
Moving Out of the Organization are of three sorts: layoffs, downsizings, and firings. We will also describe exit interviews and nondisparagement agreements, which often go along with dismissals. The phrase being laid off tends to suggest that a person has been dismissed temporarily—as when a carmaker doesn't have enough orders to justify keeping its production employees—and may be recalled later when economic conditions improve. A downsizing is a permanent dismissal; there is no rehiring later. The phrase being fired, with all its euphemisms and synonyms—being "terminated," "separated," "let go," "sacked," "axed," "canned"—tends to mean that a person was dismissed permanently "for cause":
The Representativeness Bias: Faulty Generalizing from a Small Sample or a Single Event
Nevertheless, millions of people buy lottery tickets because they read or hear about a handful of fellow citizens who have been the fortunate recipients of enormous winnings. This is an example of the representativeness bias, the tendency to generalize from a small sample or a single event.
threat of new entrants
New competitors can affect an industry almost overnight, taking away customers from existing organizations.
commitment from senior leaders
One of the biggest lessons we have learned from our consulting experience is that the achievement of strategic goals is unlikely without real commitment from senior leader
required structure and processes
Organizational structure and internal processes can promote innovation if they foster collaboration, cross-functional communication, and agility.
Settling Labor-Management Disputes mediation
Process in which a neutral 3rd party, a mediator, listens to both sides in a dispute an makes suggestions and encourages them to agree on a solution
Michael Porter on strategy
Professor Harvard Business School "The single most important strategist..." "What is Strategy? (HBR Classic) Competitive Strategy: creating and sustaining superior performance Competitive Advantage: techniques for analyzing industries and competitors Discuss the Ideas of Porter on Strategy • Three Principles "strategic positioning" Five Forces of "competitive forces" four Strategies of "competitive strategies"
rewards, titles, promotions, and bonuses
Rewards and status symbols are among the strongest ways to embed organizational culture.
question marks
Risky new ventures - some will become stars, some dogs
project post-mortems
Said to have originated as a debriefing strategy used by the military, a project post-mortem is, as the name suggests, a review of recent decisions in order to identify possible future improvements
severance may be offered to departing employees
Severance Agreements Severance May be Offered to Departing Employees •Contract between the exiting employee and the organization where the terms of the separation (along with other conditions) are formalized •Typically includes a monetary incentive for the employee •May include a nondisparagement agreement •Contract between two parties that prohibits one party from criticizing the other •Often used to prohibit former employees from criticizing their former employers •More and more difficult to enforce
how AI is changing recruiting
Some AI programs can help with tasks as routine but time-consuming as scheduling interviews, screening and ranking candidates, creating job postings, and administering some kinds of ability tests.
common elements of organizations: 1 - common purpose
The Means for Unifying Members The common purpose unifies employees or members and gives everyone an understanding of the organization's reason for being.
embed preferred culture: formal statement
The first way to embed preferred culture is through the use of formal statements of organizational philosophy, mission, vision, and values, as well as materials used for recruiting, selecting, and socializing employees.
business analytics
The process of evaluating data related to business management and/or business operations
target elements of change "which levers can we pull that will produce the change we want?"
The target elements of change represent four levers that managers may use to diagnose problems 1. People—their knowledge, ability, attitudes, motivation, and behavior. 2. Organizational arrangements—such as policies and procedures, roles, structure, rewards, and physical setting. 3. Methods—processes, work flow, job design, and technology. 4. Social factors—culture, group processes, interpersonal interactions, communication, and leadership.
autonomous intelligence
The third type of AI application to decision making includes self-driving cars. In this use of autonomous intelligence, humans have given operational control to the machine.135
horizontal dimension - inward or outward focus?
This dimension expresses the extent to which an organization focuses its attention and efforts inward on internal dynamics and employees ("internal focus and integration") versus outward toward its external environment and its customers and shareholders ("external focus and differentiation").
The vertical dimension—flexibility or stability?
This dimension expresses the extent to which an organization prefers flexibility and discretion versus stability and control. Combining these two dimensions creates the four types of organizational culture based on different core values—namely, clan, adhocracy, market, and hierarchy
Wide Span of Control
This means a manager has several people reporting—a first-line supervisor may have 40 or more subordinates, if little hands-on supervision is required, as is the case in some assembly-line workplaces. An organization is said to be flat when there are only a few levels with wide spans of control. ** spans of 7 to 10 subordinates are considered best
diagnosis what is the problem?
To carry out the diagnosis, OD consultants or managers use some combination of questionnaires, surveys, interviews, meetings, records, and direct observation to ascertain people's attitudes and to identify problem areas. * A problem is defined as a gap between an outcome or result desired by managers and the actual status of the outcome or result.
3 levels of management
Top management, middle management, and first-line management.
nature of change in organizations
What will you be called on to deal with? 1. The marketplace is becoming more segmented; more niche products 2.More competitors offering targeted products, requiring faster speed-to-market 3.Some traditional companies may not survive radically innovative change :disruptive innovation 4. China, India, and other offshore suppliers are changing the way we work 5. Knowledge, not innovation, is becoming the new competitive advantage
2. Surprise and Fear of the Unknown
When radically different changes are introduced without warning—for example, without any official announcements—the office rumor mill will go into high gear, and affected employees will become fearful of the implications of the changes.
authorization card
When workers in a particular organization decide to form a union, they first must get each worker to sign an authorization card, which designates a certain union as the workers' bargaining agent. When at least 30 percent of workers have signed cards, the union may ask the employer for official recognition.
union shop
Workers aren't required to be union members when hired for a job but must join the union within a specified time. Not allowed in 22 states (right-to-work states)
agency shop
Workers must pay equivalent of union dues but aren't required to join the union. Applies to public-sector teachers in some states, prohibited in others
process innovation
a change in the way a product or service is conceived, manufactured, or disseminated
proactive learning orientation
a desire to learn and improve one's knowledge, soft skills, and other characteristics in pursuit of personal development. drives creativity and innovation
business plan
a document that outlines a proposed firm's goals, the strategy for achieving them, and the standards for measuring success. -document that outlines how goals are going to be met
management by objectives (MBO)
a four-step process in which (1) managers and employees jointly set objectives for the employee, (2) managers develop action plans, (3) managers and employees periodically review the employee's performance, and (4) the manager makes a performance appraisal and rewards the employee according to results **the purpose of MBO is to motivate rather than to control subordinates
symbol
a symbol is an object or action that represents an idea or quality. With respect to culture, symbols are artifacts used to convey an organization's most important values. The Nike swish is an example.
forecast
a vision or projection of the future
carrying out the plan (aka implementing or executing)
after all was said and done, more was said than done
Value Statement
also called a core values statement, which expresses what the company stands for, its core priorities, the values its employees embody, and what its products contribute to the world " Without a statement, the company will lack soul " - Eric Jacobsen
rational model of decision making
also called the classical model, explains how managers should make decisions; it assumes managers will make logical decisions that are the optimal means of furthering the organization's best interests.
microlearning or bite-size learning
another relatively new approach is microlearning, or bite-size learning, which segments learning into bite-size content, enabling a student to master one piece of learning before advancing to anything else. Most microlearning mixes video and interactive lessons that take under five minutes to complete and include a quiz
rational decision making stage 2 think up alternative solutions
both the obvious and the creative Employees burning with bright ideas are an employer's greatest competitive resource. "Creativity precedes innovation, which is its physical expression," says Fortune magazine writer Alan Farnham. "It's the source of all intellectual property.
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Clan Culture: An Employee-Focused Culture Valuing Flexibility, Not Stability
clan culture has an internal focus and values flexibility rather than stability and control encourages collaboration among employees Like a family-type organization, it encourages collaboration among employees, striving to encourage cohesion through consensus and job satisfaction and to increase commitment through employee involvement. Clan organizations devote considerable resources to hiring and developing their employees, and they view customers as partners.
matrix structure
combines functional and divisional chains of command in a grid so that there are two command structures: vertical and horizontal
organizational change and effectiveness at ford
company told to reinvent taurus refuse government bail out, did not file bankruptcy Allen (CEO) - losing share so the company needed to strategize. company lost 12.6 billion dollars restructured boeing planes was new to auto industry then ford borrowed 23.5 billion dollars loan bought a 3 year head start ahead of rivals to give breathing room. Japanese began to out-sell detroit non-unionized manufacturing plants collective borrowing shed 145,000 jobs 1/3 of its workforce before restructure labor $70-80 per hour after restructure $50/ hour
give performance appraisal and rewards
compare performance to objective, reward exceptional, redefine efficient
strategic human resource planning
consists of developing a systematic, comprehensive strategy for (a) understanding current employee needs and (b) predicting future employee needs.
curse of knowledge
design products are experts cursed by their knowledge, and they can't imagine what it's like to be as ignorant as the rest of us.
prospectors
develops new products and in seeking out new markets, rather than waiting for things to happen
organizational threats
environmental factors that hinder an organization's achieving a competitive advantage. EXTERNAL
organizational opportunities
environmental factors that the organization may exploit for competitive advantage. EXTERNAL
4. China, India, and Other Offshore Suppliers Are Changing the Way We Work
globalization and outsourcing are transforming whole industries and changing the way we work. China, India, Mexico, the Philippines, and other countries possess workers and even professionals willing to work twice as hard for half the pay, giving U.S. businesses substantial labor savings. some U.S. jobs have been lost, others have become more productive.
attainable
goals should be challenging, of course, but they should be realistic and attainable *although if too easy, goals won't impel people to make much effort. if impossible, employees won't even bother trying.
forced ranking
grading on a curve all employees within a business unit are ranked against one another and grades are distributed along some sort of bell curve— just like students being graded in a college course. Top performers (such as the top 20 percent) are rewarded with bonuses and promotions; the worst performers (such as the bottom 20 percent) are given warnings or dismissed. This type of performance review system is rapidly losing favor. Proponents of forced ranking say it encourages managers to identify and remove poor performers and structures a predetermined compensation curve, which enables them to reward top performers.
line position
have authority to make decisions and usually have people reporting to them.
stars
have high growth, high market share - define keepers
dogs
have low growth, low market share - should be gotten rid of
the google life
high tech buses from google to carry employees to and from work - free breakfast in cafe - free gyms, massages - google subsidized daycare business strategy - to get people within different areas to come together and collaborate. company listens to new ideas keeps employees happy - can come in at whatever time wanted give employees freedom - they will surprise you
centralized authority
important decisions are made by higher-level managers. Very small companies tend to be the most centralized, although nearly all organizations have at least some authority concentrated at the top of the hierarchy.
develop the necessary human capital
innovation has been positively associated with the individual characteristics associated with creativity, creative-thinking skills, intrinsic motivation, the quality of the relationship between managers and employees, and international work experience.
automated experience
intuition based on feelings- the involuntary emotional response to those same matters
holistic hunch
intuition that stems from expertise- a person's explicit and tacit knowledge about a person, a situation, an object, or a decision opportunity
benchmarking
is a process by which a company compares its performance with that of high-performing organizations
system
is a set of interrelated parts that operate together to achieve a common purpose.
organizational development (OD)
is a set of techniques for implementing planned change to make people and organizations more effective. Note the inclusion of people in this definition. OD focuses specifically on people in the change process.
organization
is a system of consciously coordinated activities or forces of two or more people
how long does it take for new employees to get comfortable
it may take 2-24 months for an average employee to be fully productive The first six months on a job can be critical to how one performs over the long haul because that's when the psychological patterns are established.
career readiness K S A O
knowledge soft skills attitudes other characteristics
reactors
make adjustments only when finally forced to by environmental pressures
the satisficing model
managers seek alternatives until they find one that is satisfactory, not optimal. While "satisficing" might seem to be a weakness, it may well outweigh any advantages gained from delaying making a decision until all information is in and all alternatives weighed.
Performance tests, or skills tests
measure performance on actual job tasks—so-called job tryouts—as when computer programmers take a test on a Page 337particular programming language or middle managers work on a small sample project.
ability tests
measure physical abilities, strength and stamina, mechanical ability, mental abilities, and clerical abilities.
organizational culture level 1: observable artifacts
most visible level physical manifestations of culture such as manner of dress, awards, myths and stories about the company, rituals and ceremonies, and decorations, as well as visible behavior exhibited by managers and employees.
2 kinds of performance appraisal
objective and subjective
hollow structure
often called the network structure, the organization has a central core of key functions and outsources other functions to vendors who can do them cheaper or faster
360-degree feedback appraisal
or 360-degree assessment, in which employees are appraised not only by their managerial superiors but also by peers, subordinates, and sometimes clients, thus providing several perspectives. Typically, an employee chooses evaluators from 6 to 12 other people to make evaluations, who then fill out anonymous forms, the results of which are tabulated by Page 348computer.
analytics
or business analytics, the term used for sophisticated forms of business data analysis. One example of analytics is portfolio analysis, in which an investment adviser evaluates the risks of various stocks. Another example is the time-series forecast, which predicts future data based on patterns of historical data. 3 key attributes among analytics competitors: 1. use of modeling 2. multiple applications 3. support from top management
modular structure
outsourcing pieces of a product to outside firms a firm assembles product chunks, or modules, provided by outside contractors
successful implementation
plan carefully and be sensitive to those affected
knowledge worker
potential of brain workers is someone whose occupation is principally concerned with generating or interpreting information, as opposed to manual labor
social capital
potential of strong and cooperative relationships is the economic or productive potential of strong, trusting, and cooperative relationships
onboarding
programs that help employees to integrate and transition to new jobs by making them familiar with corporate policies, procedures, cultures, and politics by clarifying work-role expectations and responsibilities.
Common Elements of Organizations
proposed by edgar schein 1. common purpose 2. coordinated effort 3. division of labor 4. hierarchy of authority 5. span of control 6. authority, responsibility, delegation 7. centralization vs decentralization of authority
analytics
quantitative, fact-based analysis and found three key attributes among analytics competitors: use of modeling, multiple applications, and support from top management. use of modeling: predictive modelling is a data-mining technique used to predict future behavior and anticipate the consequences of change. multiple applications supporting many parts of the business
critical thinking/problem solving
reasoning to analyze situations, make decisions, and solve problems -critical activities associated with planning and require the ability to obtain, interpret, and analyze both qualitative and quanitative information.
decision making style
reflects the combination of how an individual perceives and responds to information. A team of researchers developed a model of decision-making styles based on the idea that styles vary along two different dimensions: value orientation and tolerance for ambiguity
value orientation
reflects the extent to which a person focuses on either task and technical concerns or people and social concerns when making decisions. Some people, for instance, are very task focused at work and do not pay much attention to people issues, whereas others are just the opposite.
jointly set objective
research shows that an assigned goal from your boss is just as effective as setting goals participatively.
change agent-employee relationship
resistance to change is reduced when change agents and employees have a trusting relationship—faith in each other's intentions. Mistrust, on the other hand, encourages secrecy, which begets deeper mistrust, and can doom an otherwise well-conceived change
foster an innovative culture and climate
risk-averse culture as the key obstacle to innovation. innovative culture and climate are associated with the creation of new ideas and products.
assisted inteligence
simply automates basic tasks, making it faster and cheaper for humans to accomplish them
specific
specific rather than vague
staff position
staff personnel have authority functions; they provide advice, recommendations, and research to line managers
ethics
standards of rights and wrong that influence behavior
right-to-work laws
statutes that prohibit employees from being required to join a union as a condition of employment Individual states are allowed (under the 1947 Taft-Hartley Act) to pass legislation outlawing union and agency shops. As a result, 28 states have passed
heuristics
strategies that simplify the process of making decisions. "rule of thumb"
Effective Performance Feedback
take a problem-solving approach avoid criticism treat employees with respect
new-direction innovations
take a totally new or different approach to a product, service, process, or industry - create new markets and customers and rely on developing breakthroughs and inventing things that didn't already exist seasteading—the creation of floating cities—is an example.
customer divisions
tend to group activities around common customers or clients
michael porter's five competitive forces
that business-level strategies originate in five primary competitive forces in the firm's environment: (1) threats of new entrants, (2) bargaining power of suppliers, (3) bargaining power of buyers, (4) threats of substitute products or services, and (5) rivalry among competitors
reliability
the degree to which a test measures the same thing consistently
organizational weaknesses
the drawbacks that hinder an organization in executing strategies in pursuit of its vision. INTERNAL
union security clause
the part of the labor-management agreement that states that employees who receive union benefits must join the union, or at least pay dues to it
quid pro quo harassment
the person to whom the unwanted sexual attention is directed is put in the position of jeopardizing being hired for a job or obtaining job benefits or opportunities unless he or she implicitly or explicitly acquiesces.
selection process
the screening of job applicants to hire the best candidate. Essentially, this becomes an exercise in prediction steps: 1. background info 2. interviewing 3. employment tests
organizational stengthens
the skills and capabilities that give the organization special competencies and competitive advantages in executing strategies in pursuit of its vision. INTERNAL
diversification
the strategy of moving into new lines of business single-product strategy company makes and sells only one product within its market Benefit-focus Risk-vulnerability Diversification strategy operating several businesses under one ownership that operate independently of one another Related (General Motors) Unrelated (General Electric)
validity
the test measures what it purports to measure and is free of bias.
evidence-based management
the translation of principles based on best evidence into organizational practice, bringing rationality to the decision-making process,
Lewin's Change Model: Unfreezing, Changing, and Refreezing
three stages—unfreezing, changing, and refreezing to explain how to initiate, manage, and stabilize planned change
incentives
to attract high-performing employees and to induce those already employed to be more productive, many organizations offer incentives, such as commissions, bonuses, profit-sharing plans, and stock options.
VRIO to assess competitive potential
value rarity imitability organization
a ________ statement expresses what the company stands for, its core priorities and what its products contribute to the world.
values
values statement
values - the relatively permanent and deeply held underlying beliefs and attitudes that help determine a person's behavior. integrity, dedication, teamwork, excellence, compassion. values reflect the qualities that represent and organization's deeply held beliefs, highest priorities, and core guiding principles. Values statements "become the deeply ingrained principle and fabric that guide employee behavior and company decisions and actions—the behaviors the company and employees expect of themselves," says former executive Eric Jacobsen. "Without a statement, the company will lack soul.
mission statement
what is our reason for being? -expresses the purpose of the organization -responsibility of top management and the board of directors
what does it mean to "fit"?
what the interviewer is trying to find out is how well you will fit in—what is called person-organization (PO) fit, which reflects the extent to which your personality and values match the climate and culture in an organization
Equal Employment Opportunity
The effort to reduce discrimination in employment based on racial, ethnic, and religious bigotry and gender stereotypes began with Title VII of the Civil Rights Act of 1964. This established the Equal Employment Opportunity Commission (EEOC), whose job is to enforce antidiscrimination and other employment-related laws. Title VII applies to all organizations or their agents engaged in an industry affecting interstate commerce that employs 15 or more employees
boundaryless organization
The opposite of a bureaucracy, with its numerous barriers and divisions is a fluid, highly adaptive organization whose members, linked by information technology, come together to collaborate on common tasks. The collaborators may include not only co-workers but also suppliers, customers, and even competitors.
rivalry among competitors
The preceding four forces influence the fifth force, rivalry among competitors. Think of the wild competition among food retailers and the enormous number of places you can get a cup of coffee, including at home. Once again, the Internet has intensified rivalries among all kinds of organizations. An organization should do a good SWOT analysis that examines these five competitive forces, Porter felt. Then it was in a position to formulate effective strategy, using what he identified as four competitive strategies, as we discuss in the next section.
Settling labor management disputes: Arbitration
The process in which a neural 3rd party, an arbitrator, listens to both parties in a dispute and makes a decision that the parties have agreed will be binding on them
what is wrong with the rational model
The rational model, also called the classical model is prescriptive, describing how managers SHOULD make decisions. It doesn't describe how managers actually make decisions. Indeed, the rational model makes some highly desirable assumptions—that managers have complete information, are able to make an unemotional analysis, and are able to make the best decision for the organization. (See Table 7.1.) We all know that these assumptions are unrealistic.
diversification strategy
The strategy of moving into new lines of business, such as Amazon purchasing Whole Foods or CVS buying Aetna, is called diversification. Other examples include JAB Holdings, a European investment firm, acquiring bakery-café chain Panera Bread. This merger establishes a "formidable food-focused portfolio that includes Keurig Green Mountain, Krispy Kreme Doughnuts, Peet's Coffee & Tea, and Caribou Coffee Company." In addition to fitting in with JAB Holdings' other business units, Panera was a good purchase because it has demonstrated steady sales growth during a period in which other chains were hurting.66
tolerance for ambiguity
This individual difference indicates the extent to which a person has a high need for structure or control in his or her life. Some people desire a lot of structure in their lives (a low tolerance for ambiguity) and find ambiguous situations stressful and psychologically uncomfortable. In contrast, others do not have a high need for structure and can thrive in uncertain situations (a high tolerance for ambiguity). Ambiguous situations can energize people with a high tolerance for ambiguity.
The Anchoring and Adjustment Bias: Being Influenced by an Initial Figure
This is an instance of the anchoring and adjustment bias, the tendency to make decisions based on an initial figure. Managers will often give their employees a standard percentage raise in salary, basing the decision on whatever the workers made the preceding year.
is the proposed action legal>
This may seem an obvious question. But, Bagley observes, "corporate shenanigans suggest that some managers need to be reminded: If the action isn't legal, don't do it. When people feel entitled or compelled to compromise their own personal ethics to advance the interests of a business, "it is an invitation to mischief.
rational decision making stage 3 evaluate
In this stage, you need to evaluate each alternative not only according to cost and quality but also according to the following questions: (1) Is it ethical? (If it isn't, don't give it a second look.) (2) Is it feasible? (If time is short, costs are high, technology Page 243unavailable, or customers resistant, for example, it is not.) (3) Is it ultimately effective? (If the decision is merely "good enough" but not optimal in the long run, you might reconsider.)
consensus
which occurs when members are able to express their opinions and reach agreement to support the final decision. More specifically, consensus is reached "when all members can say they either agree with the decision or have had their 'day in court' and were unable to convince the others of their viewpoint," says one expert in decision making. "In the final analysis, everyone agrees to support the outcome."168 This does not mean, however, that group members agree with the decision, only that they are willing to work toward its success.
The Analytical Style: Careful Decision Makers Who Like Lots of Information and Alternative Choices
Analytical managers like to consider more information and alternatives than those adopting the directive style. They are careful decision makers who take longer to make decisions, but they may also tend to overanalyze a situation.
self-affirmation
are defined as positive statements "that can help you focus on goals, get rid of negative, self-defeating beliefs and program your subconscious mind." They flip our close-minded thoughts from negativity to positivity. Sample affirmations include
The Escalation of Commitment Bias: Feeling Overly Invested in a Decision
If you really hate to admit you're wrong, you need to be aware of the escalation of commitment bias, whereby decision makers increase their commitment to a project despite negative information about it.
two systems in decision making
In Thinking, Fast and Slow, psychologist Daniel Kahneman, winner of the 2002 Nobel Prize in economics, describes two kinds of thinking, which he labels System 1 and System 2:14 System 1—intuitive and largely unconscious: System 1 operates automatically and quickly; it is our fast, automatic, intuitive, and largely unconscious mode, as when we detect hostility in a voice or detect that one object is more distant than another. System 2—analytical and conscious: System 2 is our slow, deliberate, analytical, and consciously effortful mode of reasoning, which swings into action when we have to fill out a tax form or park a car in a narrow space.
how does the modular structure differ from the hollow structure?
The modular structure differs from the hollow structure in that it is oriented around outsourcing certain pieces of a product rather than outsourcing certain processes (such as human resources or warehousing) of an organization.
7. Disruption of Cultural Traditions or Group Relationships
Whenever individuals are transferred, promoted, or reassigned, it can disrupt existing cultural and group relationships.
human capital
is the economic or productive potential of employee knowledge, experience, and actions
IDEO Shopping Cart
deepdive methodology in practice team is eclectic - all come from different areas to come together and bring their specific talents to the table no titles, no permanent assignments no hierarchy - splits into groups and interviews real-life people find real experts to learn more one conversation at a time avoid judgement and criticizing post ideas on the walls
nonrational models of decision making
explain how managers make decisions; they assume that decision making is nearly always uncertain and risky, making it difficult for managers to make optimal decisions. The nonrational models are descriptive rather than prescriptive: They describe how managers actually make decisions rather than how they should. Two nonrational models are (1) satisficing and (2) intuition.
hostile environment harassment
in which the person being sexually harassed doesn't risk economic harm but experiences an offensive or intimidating work environment. Anti-female remarks are particularly prevalent on social media
exit interview
is a formal conversation between a manager and a departing employee to find out why he or she is leaving and to learn about potential problems in the organization
growth strategy
is a grand strategy that involves expansion—as in sales revenues, market share, number of employees, or number of customers or (for nonprofits) clients served.
trend analysis
is a hypothetical extension of a past series of events into the future. The basic assumption is that the picture of the present can be projected into the future.
resistance to change
is an emotional/behavioral response to real or imagined threats to an established work routine
cost-leadership strategy
is to keep the costs, and hence prices, of a product or service below those of competitors and to target a wide market. This puts the pressure on R&D managers to develop products or services that can be created cheaply, production managers to reduce production costs, and marketing managers to reach a wide variety of customers as inexpensively as possible. Firms implementing the cost-leadership strategy include Timex, IKEA, computer maker Acer, retailers Walmart and Home Depot, and pen maker Bic.
transfer
moving sideways Transfer is movement of an employee to a different job with similar responsibility. It may or may not mean a change in geographical location (which might be part of a promotion as well). Employees might be transferred for 4 principal reasons: (1) to solve organizational problems by using their skills at another location; (2) to broaden their experience in being assigned to a different position; (3) to retain their interest and motivation by being presented with a new challenge; or (4) to solve some employee problems, such as personal differences with their bosses
job specification
which describes the minimum qualifications a person must have to perform the job successfully.
perception of change
which is influenced by the attitudes and behaviors exhibited by the change agent and the level of trust between the change agent and the employee
the 2nd core processes : strategy
In most organizations, the strategies developed fail to consider the "how" of execution. -according to the authors, a good strategic plan addresses 9 questions
5. Knowledge, Not Information, Is Becoming the New Competitive Advantage
"Information is rapidly becoming a profitless commodity, and knowledge is becoming the new competitive advantage That is, as information technology does more of the work formerly done by humans, even in high-tech areas (such as sorting data for relevance), many low-level employees previously thought of as knowledge workers are now being recognized as "data workers," who contribute very little added value to the processing of information. the number of people in knowledge-work jobs—nonroutine cognitive occupations—has more than doubled in the last 30 years and shows no sign of slowing down
intervention what shall we do about it?
"Treatment," or intervention, is the attempt to correct the diagnosed problems. Often this is done using the services of an OD consultant who works in conjunction with management teams.
the 3rd core process : operations
"You Need to Consider What Path Will Be Followed" The strategy process defines where an organization wants to go, and the people process defines who's going to get it done. The third core process, operations, or the operating plan, provides the path for people to follow.
the 1st core process : people
"You Need to Consider Who Will Benefit You in the Future" "If you don't get the people process right," say Bossidy and Charan, "you will never fulfill the potential of your business."
innovation system supporting forces for innovatioln innovation strategy commitment from senior leaders foster an innovative culture and climate required structure and processes
"a coherent set of interdependent processes and structures that dictates how the company searches for novel problems and solutions, synthesizes ideas into a business concept and product designs, and selects which projects get funded
integrity tests
"assess attitudes and experiences related to a person's honesty, dependability, trustworthiness, reliability, and pro-social behavior.
self-compassion
"gentleness with yourself." Self-compassion can increase your openness to change or your career readiness competency of positive approach because it reduces your need to be perfect. self-kindness remind yourself that you are not alone practice mindfulness meditation
the intuition model "it just feels right"
"going with your gut" intuition - making a choice without the use of conscious thought or logical inference
stephen r. covey
"the main thing is to keep the main thing, the main thing"
Michael Porter
"you need strategy for your organization" competition is rising - new markets open its not as easy anymore, you have to earn your success and in order to do this you need to strategize "i have found".... most companies don't have a strategy everyone works hard, goes to the office but there is no strategy in any meaningful sense. a lot of management fads nowadays that have confused leaders. one basic question "do you have a strategy?" "is the strategy sustainable?" why is there difficulty with strategy? managers have a confusion on how to think about competition competition = strategy *** many companies want to be the BEST, but that's a dangerous way to think about competition because in business competition there is no "best way" to be a certain company, it depends on the needs you are trying to fill
2 types of organizational structures
(1) the vertical hierarchy of authority, who reports to whom (2) the horizontal specialization, who specializes in what work.
planning/control cycle
(1-2) two planning steps (3-4) two controlling steps 1. make the plan 2. carry out the plan 3. control the direction by comparing results with the plan 4. control the direction by taking corrective action in two ways a. correcting deviations in the plan being carried out b. improving future plans The planning/control cycle loop exists for each level of planning—strategic, tactical, and operational. The corrective action in step 4 of the cycle (a) can get a project back on track before it's too late or (b) if it's too late, can provide data for improving future plans.
SMART goals could also be....
(no clear consensus) S: Specific M: measurable A: Agreed, Achievable, Attainable, Assignable, Actionable R: Realistic, Relevant, Results, Results-oriented, Resourced T: ime framed, Timed, Time-based, Timeboxed, Timely, Timebound, Time-Specific, Timetabled, Target Date
2. interviewing
- an unstructured interview involves asking probing questions to find out what the applicant is like. There is no fixed set of questions asked of all applicants and no systematic scoring procedure As a result, the unstructured interview has been criticized as being overly subjective and apt to be influenced by the biases of the interviewer. Equally important, it is susceptible to legal attack because some questions may infringe on non-job-related matters such as privacy, diversity, or disability.63 However, compared with the structured interview method, the unstructured interview has been found to provide a more accurate assessment of an applicant's job-related personality traits. - structured interview involves asking each applicant the same questions and comparing their responses to a standardized set of answers - situational interview the interviewer focuses on hypothetical situations. - behavioral-description interview the interviewer explores what applicants have actually done in the past.
characteristics of group decision making
- they are less efficient groups take longer to make decisions Faced with time pressures or the serious effect of a decision, groups use less information and fewer communication channels, which increases the probability of a bad decision. - their size affects decision quality the larger the group, the lower the quality of the decision some say 7 is the optimal size, others say 5. - they may be too confident groups are more confident about their judgments and choices than individuals are - knowledge counts Decision-making accuracy is higher when group members know a good deal about the relevant issues
four competitive strategies type of market targeted
1. cost-leadership - wide 2. differentiation - wide 3. cost-focus - narrow 4. focused differentiation - narrow
what are the four strategy types?
1. defenders 2. prospectors 3. analyzers 4. reactors
4 steps of performance management
1. define performance 2. monitor and evaluate performance 3. review performance 4. provide consequences
stages of the rational decision making
1. identify the problem or opportunity 2. think up alternative solutions 3. evaluate alternatives and select a solution 4. implement and evaluate the solution chosen
planning begins with which three attributes?
1. mission statement - what is our reason for being? 2. vision statement - what do we want to become? 3. values statement - what values do we want to emphasize?
types of plans (2)
1. standing plans - cover activities that are repeated or occur frequently over time. ex: the way employees in a retail store should handle returns 2. single-use plans - directs activity, such as a project, this is unlikely to be repeated.
Supertrends shaping the future of business
1. the marketplace is becoming more segmented 2. competitors offering specialized solutions require we get our products to market faster 3. some companies are unable to survive disruptive innovation 4. offshore suppliers are changing the way we work 5. knowledge, not information, is becoming the new competitive advantage
three kinds of managers
1. top management -CEO, president, VP, general managers, division heads 2. middle management -functional managers, product-line managers, department managers 3. first-line management -unit managers, team leaders, first-line supervisors
making lower-level goals align with top goals. 3 ways for goal setting to be successful:
1. top management and middle management must be committed - when top-management commitment to MBO was high, the average gain in productivity was 56%. when commitment was low, the average gain in productivity was only 6% 2. the goals must be applied organization-wide - in all divisions and departments 3. goals must "cascade" - be linked consistently down through the organization
organizational socialization phases
1st phase : (anticipatory socialization phase) occurs before one joins the organization, when a person learns—from career advisors, from web sources, from current employees—what the organization's job needs and values are and how one's own needs, values, and skills might fit in. 2nd phase : The second phase (encounter phase) takes place when a person is first hired and comes to learn what the organization is really like and how to adjust his or her expectations. The company may help to advance this socialization process through various familiarization programs (known as "onboarding" programs) 3rd phase : The third phase (change and acquisition phase) comes about once the employee understands his or her work role and now must master the necessary skills and tasks and learn to adjust to the work group's values and norms. The company may advance this phase of socialization through goal setting, incentives, employee feedback, continued support, and ceremonies ("graduation") that celebrate completion of the process.
why planning and strategic management are important
3 reasons: (1) provide direction and momentum (2) encourage new ideas, and above all (3) develop a sustainable competitive advantage "we choose to go to the moon"
developing strategic thinking
4 key activities for developing your ability to think more strategically 1. understand the business 2. broaden your task and functional knowledge 3. set aside time to reflect 4. engage in lateral thinking
The Vertical Hierarchy of Authority: Who Reports to Whom
A glance up and down an organization chart shows the vertical hierarchy, the chain of command. A formal vertical hierarchy also shows the official communication network—who talks to whom. In a simple two-person organization, the owner might communicate with just a secretary or an assistant. In a complex organization, the president talks principally to the vice presidents, who in turn talk to the assistant vice presidents, and so on.
Market Culture: A Competitive Culture Valuing Profits over Employee Satisfaction
A market culture has a strong external focus and values stability and control driven by competition and a strong desire to deliver results Because market cultures are focused on the external environment and driven by competition and a strong desire to deliver results, customers, productivity, and profits take precedence over employee development and satisfaction. Employees are expected to work hard, react fast, and deliver quality work on time; those who deliver results are rewarded.
brainwriting or electronic brainstorming
A modern-day variation is electronic brainstorming, sometimes called brainwriting, in which members of a group come together over a computer network to generate ideas and alternatives
advantages and disadvantages of group decisions
Advantages Using a group to make a decision offers five possible advantages. For these benefits to happen, however, the group must be made up of diverse participants, not just people who all think the same way. Greater pool of knowledge. When several people are making the decision, there is a greater pool of information from which to draw. If one person doesn't have the pertinent knowledge and experience, someone else might. Different perspectives. Because different people have different perspectives—marketing, production, legal, and so on—they see the problem from different angles. Intellectual stimulation. A group of people can brainstorm or otherwise bring greater intellectual stimulation and creativity to the decision-making process than is usually possible with one person acting alone. Better understanding of decision rationale. If you participate in making a decision, you are more apt to understand the reasoning behind the decision, including the pros and cons leading up to the final step. Deeper commitment to the decision. If you've been part of the group that has bought into the final decision, you're more apt to be committed to seeing that the course of action is successfully implemented. Disadvantages The disadvantages of group-aided decision making spring from problems in how members interact. A few people dominate or intimidate. Sometimes a handful of people will talk the longest and the loudest, and the rest of the group will simply give in. Or one individual, such as a strong leader, will exert disproportionate influence, sometimes by intimidation. This reduces creativity. Groupthink. Groupthink occurs when group members strive to agree for the sake of unanimity and thus avoid accurately assessing the decision situation. Satisficing. Because most people would just as soon cut short a meeting, the tendency is to seek a decision that is "good enough" rather than to push on in pursuit of other possible solutions. Satisficing can occur because groups have limited time, lack the right kind of information, or are unable to handle large amounts of information. Goal displacement. Although the primary task of the meeting may be to solve a particular problem, other considerations may rise to the fore, such as rivals trying to win an argument. Goal displacement occurs when the primary goal is subsumed by a secondary goal.
rites and rituals
As we mentioned earlier, rites and rituals represent the planned and unplanned activities and ceremonies that are used to celebrate important events or achievements.
More Competitors Are Offering Targeted Products, Requiring Faster Speed-to-Market
Companies that take too long to commercialize their products may fail to capitalize on a narrow window of opportunity before competitors swoop in and pass them by," Some of these competitors may be in and out of a market in a matter of days or months—like pop-up stores
do's and don'ts to reach consensus
Do's: Use active listening skills. Involve as many members as possible. Seek out the reasons behind arguments. Dig for the facts. Don'ts: Avoid log rolling and horse trading ("I'll support your pet project if you'll support mine"). Avoid making an agreement simply to keep relations amicable and not rock the boat. Finally, don't try to achieve consensus by putting questions to a vote; this will only split the group into winners and losers, perhaps creating bad feelings among the latter.
horizontal design
Eliminating Functional Barriers to Solve Problems also called a team-based design, teams or workgroups, either temporary or permanent, are used to improve collaboration and work on shared tasks by breaking down internal boundaries
10. Nonreinforcing Reward Systems
Employees are likely to resist when they can't see any positive rewards from proposed changes, as, for example, when one is asked to work longer hours without additional compensation.
closed shop
Employer may hire only workers for a job who are already in the union. ILLEGAL
3. employment tests
Employment tests are legally considered to consist of any procedure used in the employment selection decision process, even application forms, interviews, and educational requirements
rational decision making stage 4 implement and evaluate the solution chosen
For implementation to be successful, you need to do two things: Plan carefully. Especially if reversing an action will be difficult, you need to make careful plans for implementation. Some decisions may require written plans. Be sensitive to those affected. You need to consider how the people affected may feel about the change—inconvenienced, insecure, even fearful, all of which can trigger resistance. This is why it helps to give employees and customers latitude during a changeover in business practices or working arrangements.
easiest fields to unionize
For instance, fast-food, construction, and contract workers are now able to more easily unionize, following a National Labor Relations Board decision that recognizes that the modern U.S. economy increasingly relies on shift work and temporary employees.1
force-field analysis "Which Forces Facilitate Change and Which Resist It?"
Force-field analysis is a technique to determine which forces could facilitate a proposed change and which forces could act against it.
stay interviews
Formal conversation between a manager, the manager's leader, or HR and the team to discover what employees think about management, benefits, working conditions, etc
What drives an organizational culture?
Founder's values Industry and business environment National culture Organization's vision and strategies Behavior of leader
contemporary people-management analytics
GROW: AI by Tokyo -Based IGS •Japan, 2017: over 10% of graduating college students were recruited and hired using this software...whether they knew it or not •Software is used to manage recruiting, hiring, placement, and ongoing development •Airliners, manufacturing companies, technology firms, financial firms, and advertising companies use the software today
1. Individuals' Predisposition toward Change
How people react to change depends a lot on how they learned to handle change and ambiguity as children. One person's parents may have been patient, flexible, and understanding, and from the time the child was weaned she may have learned there were positive compensations for the loss of immediate gratification.
self-appraisals
How would you rate your own performance in a job, knowing that it would go into your personnel file? Probably the bias would be toward the favorable. Nevertheless, self-appraisals help employees become involved in the whole evaluation process and may make them more receptive to feedback about areas needing improvement.
human resource policies, practices and procedures
Human resource policies, practices, and procedures need to be consistent with and reinforce the other six components of an innovation system. Companies that know this are more likely to be innovative and to have higher financial performance.
feedback how can the diagnosis and intervention be further refined?
If evaluation shows that the diagnosis was wrong or the intervention was not effective, the OD consultant or managers need to return to the beginning to rethink these two steps.
availability bias: using only the information available
If you had a perfect on-time work attendance record for nine months but were late for work four days during the last two months because of traffic, shouldn't your boss take into account your entire attendance history when considering you for a raise? Yet managers tend to give more weight to more recent behavior. The reason is the availability bias—the use of information readily available from memory to make judgments.
changing learning new ways of doing things
In the changing stage, employees need to be given the tools for change: new information, new perspectives, new models of behavior. Managers can help here by providing benchmarking results, role models, mentors, experts, and training. Change is more likely to be accepted if employees possess the career readiness competencies of proactive learning orientation and openness to change.
refreezing making the new ways normal
In the refreezing stage, employees need to be helped to integrate the changed attitudes and behavior into their normal ways of doing things. Managers can assist by encouraging employees to exhibit the new change and then, through additional coaching and modeling, by reinforcing the employees in the desired change
unfreezing creating the motivation to change
In the unfreezing stage, managers try to instill in employees the motivation to change, encouraging them to let go of attitudes and behaviors that are resistant to innovation. For this "unfreezing" to take place, employees need to become dissatisfied with the old way of doing things. Managers also need to reduce the barriers to change during this stage.
directive style Action-Oriented Decision Makers Who Focus on Facts
In their pursuit of speed and results, however, these individuals can tend to be autocratic, to exercise power and control, and to focus on the short run.
contemporary people-management analytics
Interviewing Recent Grads for Call Center Supervisor •Universally accepted measures such as resume, degree, and years of similar (or industry) experience •Behavioral assessment such as Predictive Index (et al.) •Determine common trends or demographic information from successful incumbents in the role •Student organization leadership experience •Specific major or specific university •Employment during schooling •GPA •Specific past times during college
9. Lack of Tact or Poor Timing
Introducing changes in an insensitive manner or at an awkward time can create employee resistance. Employees are more apt to accept changes when managers effectively explain their value, as, for example, in demonstrating their strategic purpose to the organization
nondisparagement agreement
Is a contract between two parties that prohibits one party from criticizing the other; it is often used in severance agreements to prohibit former employees from criticizing their former employers
organization
Is the Firm Organized to Exploit the Resource or Capability?
imitability
Is the Resource or Capability Costly for Other Firms to Imitate?
rarity
Is the Resource or Capability Currently Controlled by Only a Few Firms or No Other Firms?
threats of substitute products or services
Like all retailers, Starbucks must ensure that customers continue to prefer its products to the many options available, not only other brands of coffee (purchased in store, online, or in the supermarket), but also other kinds of drinks, which may be less expensive or have lower sugar content.
dialectic method
Like devil's advocacy, the dialectic method is a time-honored practice, going all the way back to ancient Greece. Plato and his followers attempted to identify a truth, called thesis, by exploring opposite positions, called antithesis. Court systems in the United States and elsewhere today rely on hearing directly opposing points of view to establish guilt or innocence. Accordingly, the dialectic method calls for managers to foster a structured dialogue or debate of opposing viewpoints prior to making a decision
adapt to mergers
Mergers and acquisitions are associated with increased anxiety, stress, absenteeism, turnover, and decreased productivity
health and safety
Occupational Safety and Health Act (OSH Act) of 1970, a body of law has grown that requires organizations to provide employees with nonhazardous working conditions (most recently augmented by an update to the Toxic Substances Control Act of 1976) * Later laws extended health coverage, including 2010 health care reform legislation, which requires employees with more than 50 employees to provide health insurance.152 (More than 60 percent of working-age Americans who signed up for Medicaid or a private health plan through the Affordable Care Act get health care they previously couldn't get
pros to AI
On the plus side, humans could be relieved of some of the drudgery of work—and even some of the time commitment today's jobs often require—as more tasks could be safely assigned to AI applications or machine learning systems. The struggle to find work-life balance or to accommodate the conflicting needs of boss and family could become a thing of the past. AI-assisted traffic lights that adjust to congested roads, bad weather, and accidents could make commuting in your self-driving car a breeze.
the different types of learning and development
On-the-job learning and development -On-the-job L&D takes place in the work setting while employees are performing job-related tasks. Four major methods are coaching, training positions, job rotation, and planned work activities. Off-the-job learning and development. Off-the-job L&D consists of classroom programs, workbooks, videos, and games and simulations.
How Unions & Management Negotiate a Contract
Once a union is recognized as an official bargaining unit, its representatives can then meet with management's representatives to do collective bargaining—to negotiate pay and benefits and other work terms. When agreement is reached with management, the union representatives take the collective bargaining results back to the members for ratification—they vote to accept or reject the contract negotiated by their leaders. If they vote yes, the union and management representatives sign a negotiated labor-management contract, which sets the general tone and terms under which labor and management agree to work together during the contract period.
vertical inegration
Organizations can also pursue a diversification strategy through vertical integration. In vertical integration, a firm expands into businesses that provide the supplies it needs to make its products or that distribute and sell its products
appropriate resources
Organizations need to put their money where their mouths are. If managers want innovation, they must dedicate resources to its development. Resources can include people, dollars, time, energy, knowledge, and focus.
outputs "what results do we want from the change?"
Outputs represent the desired goals of a change, which should be consistent with the organization's strategic plan. Results may occur at the organizational, group, or individual level (or all three) but will be most difficult to effect at the organizational level because changes will mostly likely affect a wide variety of target elements.
The Conceptual Style: Decision Makers Who Rely on Intuition and Have a Long-Term Perspective
People with a conceptual style have a high tolerance for ambiguity and tend to focus on the people or social aspects of a work situation. They take a broad perspective to problem solving and like to consider many options and future possibilities. Conceptual types adopt a long-term perspective and rely on intuition and discussions with others to acquire information. They also are willing to take risks and are good at finding creative solutions to problems. As discussed earlier in this chapter, Elon Musk, founder of Tesla and SpaceX, fits this description well. However (although this is not true in Musk's case), a conceptual style can foster an indecisive approach to decision making.
Disciplining & Demotion: The Threat of Moving Downward
Poorly performing employees may be given a warning or a reprimand and then disciplined. That is, they may be temporarily removed from their jobs, as when a police officer is placed on suspension or administrative leave—removed from his or her regular job in the field and perhaps given a paperwork job or told to stay away from work. demoted—that is, have his or her current responsibilities, pay, and perquisites taken away, as when a middle manager is demoted to a first-line manager. (Sometimes this may occur when a company is downsized, resulting in fewer higher-level management positions.)
example of structure
Question XYZ Hospital has a chief of medical services, a director of administrative services, and a director of outpatient services. XYZ has a ___________ structure. 1.functional ******* 2.simple 3.divisional 4.matrix
Very Threatening: Radically Innovative Change—"This Is a Brand-New Thing in Our Industry"
Radically innovative change introduces a practice that is new to the industry. Because it is the most complex, costly, and uncertain, it will be felt as extremely threatening to managers' confidence and employees' job security and may well tear at the fabric of the organization.
symptoms of groupthink
Sense of invulnerability. Group members have the illusion that nothing can go wrong, breeding excessive optimism and risk taking. They may also be so assured of the rightness of their actions that they ignore the ethical implications. Rationalization. Rationalizing protects the pet assumptions underlying the group's decisions from critical questions. Illusion of unanimity and peer pressure. The illusion of unanimity is another way of saying that a member's silence is interpreted as consent. If people do disagree, peer pressure leads other members to question the dissenters' loyalty. "The wisdom of crowds." Groupthink's pressure to conform often leads members with different ideas to censor themselves—the opposite of collective wisdom, says James Surowiecki, in which "each person in the group is offering his or her best independent forecast. It's not at all about compromise or consensus."
bargaining power of suppliers
Some companies are readily able to switch suppliers in order to get components or services, but others are not.
customers and clients
Some organizations, such as restaurants and hotels, ask customers and clients for their appraisals of employees.
why does strategy matter?
The 'surplus society' has a surplus of similar organizations, employing similar people, with similar backgrounds, working on similar jobs, coming up with similar ideas, producing similar things, with similar prices and similar quality
compensation and benefits
The Social Security Act in 1935 established the U.S. retirement system. Fair Labor Standards Act of 1938 established minimum living standards for workers engaged in interstate commerce, including provision of a federal minimum wage
engage in lateral thinking:
The concept of lateral thinking was developed by Dr. Edward De Bono to encourage creativity and insight. It relies on what De Bono called the Six Thinking Hats. Individuals and teams are encouraged to mentally wear and switch "hats" during meetings. The six hats consist of the following:97 The White Hat calls for gathering the facts known or needed. The Yellow Hat focuses on positivity and optimism. Here you explore and probe for the value of whatever you are discussing. The Black Hat entails judgment. When wearing this hat, you explore the reasons "why something may not work." Look for the dangers or difficulties associated with the issue at hand. This can be formalized by using a devil's advocate. This individual is given the role of providing a counterargument to what is being proposed. The Red Hat concentrates on feelings and intuition, which is discussed in Chapter 7. Try on this hat by discussing emotions, feelings, fears, hunch, likes, and dislikes. The Green Hat focuses on creativity. Explore new ideas, concepts, alternatives, and perceptions. The Blue Hat is the control function. It is used to ensure that all six hats are being used.
labor relations
The earliest laws affecting employee welfare had to do with unions, and they can still have important effects. Legislation passed in 1935 (the Wagner Act) resulted in the National Labor Relations Board (NLRB), which enforces procedures whereby employees may vote to have a union and for collective bargaining.
The Framing Bias: Shaping the Way a Problem Is Presented
The framing bias is the tendency of decision makers to be influenced by the way a situation or problem is presented to them. as "85% lean meat" instead of "15% fat,"
organizational structure
The hierarchical structure found in most traditional organizations is more likely to reinforce a culture oriented toward control and authority compared with the flatter organization that eliminates management layers in favor of giving employees more power.
common elements of organization 4 -hierarchy of authority
The hierarchy of authority, or chain of command, is a control mechanism for making sure the right people do the right things at the right time.
Narrow Span of Control
This means a manager has a limited number of people reporting—three vice presidents reporting to a president, for example, instead of nine vice presidents. An organization is said to be tall when there are many levels with narrow spans of control.
unlawful harassment
Unwelcome sexual advances, requests for sexual favors or other physical, or verbal conduct of a sexual nature, particularly when submission to such conduct is a condition of employment.
AI
When it comes to building and evaluating models and simulations to make predictions, machines guided by AI are more powerful than humans and much, much faster.
common elements of organizations 3 - division of labor
Work Specialization for Greater Efficiency Division of labor, also known as work specialization, is the arrangement of having discrete parts of a task done by different people.
open shop
Workers may choose to join or not join a union. Applies in 22 states (right-to-work states)
the organization chart
a box-and-lines illustration showing the formal lines of authority and the organization's official positions or work specializations.
virtual structure
a company outside a company that is created "specifically to respond to an exceptional market opportunity that is often temporary"
SMART goals
a goal that is specific, measurable, attainable, results-oriented & has target dates
the vision statement
a vision: is a long term goal describing "what" and organization wants to become. it is a clear sense of the future and the actions needed to get there. "a vision should describe what's happening to the world you compete in and what you want to do about it," says one Fortune article. "It should guide decisions." after formulation a mission statement, top managers need to develop a vision statement, which expresses what the organization should become, where it wants to go strategically.
resignation
a voluntary separation of employment
closed shop agreement
which is illegal today in which a company agreed it would hire only current union members for a given job
Adhocracy Culture: A Risk-Taking Culture Valuing Flexibility
adhocracy culture has an external focus and values flexibility adaptable, creative and quick to respond to marketplace Creation of new products and services is the strategic thrust of this culture, which attempts to create innovative products by being adaptable, creative, and quick to respond to changes in the marketplace. Employees are encouraged to take risks and experiment with new ways of getting things done. Adhocracy cultures are well suited for start-up companies, those in industries undergoing constant change, and those in mature industries that are in need of innovation to enhance growth.
objective appraisals
also called results appraisals, are based on facts and are often numerical. In these kinds of appraisals, you would keep track of such matters as the numbers of products the employee sold in a month, customer complaints filed against an employee, miles of freight hauled, and the like. - measure desired results - harder to challenge legally
goal
also known as an objective, is a specific commitment to achieve a measurable result within a stated period of time. goals may be long-term or short-term
contingency planning
also known as scenario planning and scenario analysis —is the creation of alternative hypothetical but equally likely future conditions. For example, scenarios may be created with spreadsheet software such as Microsoft Excel to present alternative combinations of different factors—different economic pictures, different strategies by competitors, different budgets, and so on
matrix structure
an organization combines functional and divisional chains of command in a grid so that there are two command structures—vertical and horizontal.
virtual organization
an organization whose members are geographically apart, usually working with e-mail and other forms of information technology, yet which generally appears to customers as a single, unified organization with a real physical location.
level 3: functional-level strategy
applies to the key functional departments or units within the business units. -Functional managers lead planning discussions at this level, and the focus is on more tactical issues that support business-level strategies.
Intelligence or cognitive ability tests
are also popular for predicting future executive performance, and perhaps with good reason.
labor unions
are organizations of employees formed to protect and advance their members' interests by bargaining with management over job-related issues
strategic positioning
attempts to achieve sustainable competitive advantage by preserving what is distinctive about a company. "It means," he says, "performing different activities from rivals, or performing similar activities in different ways."7 3 key principles underlie strategic positioning. 1. strategy is the creation of a unique and valuable position -few needs, many customers broad needs, few customers -broad needs, many customers 2. strategy requires trade-off in competing -what strategy to follow, and what strategy NOT to follow 3. strategy involves creating a "fit" among activities -"Fit" has to do with the ways a company's activities interact and reinforce one another.
job description
which summarizes what the holder of the job does and how and why he or she does it.
becoming more proactive
being "intentionally proactive" - relying on your own choices instead of luck and circumstances Lina Tinsley, brand manager at MARS, recommends these 4 key actions: 1. focus on solutions rather than problems 2. take initiative and rely on yourself 3. set realistic goals and don't overpromise 4. participate and contribute to personal and professional conversations
developing a sustainable competitive advantage
competitive advantage - the ability of an organization to produce goods or services more effectively than competitions do, thereby outperforming them. companies must have products or services that are valuable, rare, and non-imitable, and an organization poised to exploit its strengths. This occurs when an organization is able to get and stay ahead in four areas (1) in being responsive to customers (2) in innovating (3) in quality and (4) in effectiveness Taxify - startup offering motorbike-hailing.
strategic control: the feedback loop
consists of monitoring the execution of strategy and making adjustments, if necessary. -To keep strategic plans on track, managers need control systems to monitor progress and take corrective action—early and rapidly—when things start to go awry. Corrective action constitutes a feedback loop in which a problem requires that managers return to an earlier step to rethink policies, redo budgets, or revise personnel arrangements.
collective barganing
consists of negotiations between management and employees about disputes over compensation, benefits, working conditions, and job security
human resource HR management
consists of the activities managers perform to plan for, attract, develop, and retain an effective workforce hr professionals are key business partners for the organization's other leaders as those leaders maintain their teams and grow the organization fortune 50 companies credit a significant part of the competitive advantage to strategic hr initiatives
wages or salaries base pay
consists of the basic wage or salary paid employees in exchange for doing their jobs.
Sexual Harassment
consists of unwanted sexual attention that creates an adverse work environment This means obscene gestures, sex-stereotyped jokes, sexually oriented posters and graffiti, suggestive remarks, unwanted dating pressure, physical nonsexual contact, unwanted touching, sexual propositions, threatening punishment unless sexual favors are given, obscene phone calls, and similar verbal or physical actions of a sexual nature.
common elements of organizations: 2 -Coordinated Effort
coordinated effort, the coordination of individual efforts into a group or organizationwide effort. Although it's true that individuals can make a difference, they cannot do everything by themselve
organizational culture level 3:
core values of the organization Basic assumptions, which are not observable, represent the core values of an organization's culture—those that are taken for granted and, as a result, are difficult to change.
performance management
is defined as a set of processes and managerial behaviors that involve defining, monitoring, measuring, evaluating, and providing consequences for performance expectations
decisions, decisions
decisions are all around us mundane decisions to who to marry rational brain can only take in so much information at a time when deciding and start to studded stop thinking, just go for it - our emotional brain can filter much more than our rational brain lost the ability to feel emotions - could not settle on decisions emotions affect decisions happiness and anger make you under perceive risk and take more risks - certainty and control. can be dangerous when you come to a fork in the road - TAKE IT americans love choice more than anyone in the world more choices isn't always better more choices might make purchases less likely 10x more likely to buy when provided with less options
action plan
defines the course of action needed to achieve a stated goal. Whether the goal is long-term or short-term, action plans outline the tactics that will be used to achieve a goal. Each tactic also contains a projected date for completing the desired activities **who will do what by when?** EXAMPLE: 1. I want to get in shape. 2. I am going to join a health club this week and work out three times a week for 1 ½ hours each time to get in shape and improve my health by the end of the month
level 1: corporate-level strategy
focuses on the organization as a whole. -Executives at the most senior levels, generally referred to as the "C-Suite," typically conduct this type of strategic planning. -This analysis answers questions such as "what business are we in?" and "what products and services shall we offer?" Strategic decisions at this level can involve acquisitions, such as Amazon's acquisition of Whole Foods, joint ventures like the one between Volvo and Autoliv to develop software for driverless vehicles, and significant investments in plant and equipment
3. Some Traditional Companies May Not Survive Radical Change
disruptive innovation, a process by which a product or service takes root initially in simple applications at the bottom of a market and then relentlessly moves up market, eventually displacing established competitors
bounded rationality
economist herbert simon received the nobel prize "satisfactory is good enough" the concept suggests that the ability of decision makers to be rational is limited by numerous constraints, such as complexity, time and money, and their cognitive capacity, values, skills, habits, and unconscious reflexes.
" leadership and culture are two sides of the same coin "
edgar schein
A company's strategy can best be described as a(n) _______ about what long-term goals or direction to pursue for the survival or prosperity of the organization.
educated guess
employee attrition
employee is not replaced attrition occurs when an employee retires or when the company eliminates his or her job, and the employer leaves the vacancy unfilled
employee turnover
employee is replaced Turnover occurs when an employee abandons, resigns, retires, or is terminated from a job, and the employer seeks to replace him or her.
analyzers
et other organizations take the risks of product development and marketing and then imitate what seems to work best
effective responses to a decision situation
evaluate importance - determine how much priority to give the situation evaluate credibility - Determine how believable the data is about the situation • Consider the source of the information evaluate urgency - determine how quickly you must act on this information •Evaluate the window of opportunity or the nature of the threat
evidence-based decision making
evidence-Based Decision Making •Rooted in evidence-based management •Relies in fact-based information and analytics Challenges with Evidence-Based Decisions & Management •Too much evidence to consider •Not enough good, quality, clean evidence •Evidence is not directly applicable •Stories can be more persuasive than fac
suistainable competitive advantage
exists when other companies cannot duplicate the value delivered to customers
organizational culture level 2: espoused values
explicitly stated values and norms Espoused values - are the explicitly stated values and norms preferred by an organization, as may be put forth by the firm's founder or top managers. enacted values - which represent the values and norms actually exhibited in the organization.
advice from dad
find something you really like to do find something that you
Affirmative Action
focuses on achieving equality of opportunity within an organization.
level 2: business-level strategy
focuses on individual business units or product/service lines. -Senior-level managers below the C-Suite typically are responsible for this level of strategy. Issues under consideration flow from decisions made at the corporate level and involve considerations such as how much to spend on marketing, new-product development, product expansion or contraction, facilities Page 192expansion or reduction, equipment, pricing, and employee development.
flat organization
is defined as one with an organizational structure with few or no levels of middle management between top managers and those reporting to them.
divisional structure
grouping by similarity of purpose people with diverse occupational specialties are put together in formal groups by similar products or services, customers or clients, or geographic regions.
internal recruiting
hiring from the inside means making people already employed by the organization aware of job openings most vacant positions in organizations are filled through internal recruitment, mainly through job posting, placing information about job vacancies and qualifications on bulletin boards, in newsletters, and on the organization's intranet.
external recruiting
hiring from the outside means attracting job applicants from outside the organization. In years past, notices of job vacancies were placed through newspapers, employment agencies, executive recruiting firms, union hiring halls, college job-placement offices, and word of mouth. Today more than 90 percent of U.S. organizations use social networks to find new employees, with LinkedIn the most popular site by far ** the most effective sources are employee referrals, say human resource professionals, because, to protect their own reputations, employees are fairly careful about whom they recommend, and they know the qualifications of both the job and the prospective employee
organizational design
is concerned with designing the optimal structures of accountability and responsibility that an organization uses to execute its strategies. We can categorize organizational designs as three types: (1) traditional designs, (2) horizontal designs (3) designs that open boundaries between organizations.
two-tier wage contracts
in which new employees are paid less or receive lesser benefits than veteran employees have
Givebacks
in which the union agrees to give up previous wage or benefit gains in return for something else. Usually, the union seeks job security, as in a no-layoff policy.
results-oriented
in writing out the goals, start with the word "to" and follow it with action-oriented verbs- "complete," "acquire", "increase"
promoting innovation
invention -creating or making something new creativity developing new and imaginative ideas into reality innovation the activity of creating new ideas and converting them into useful applications - specifically, new goods and services
product innovation
is a change in the appearance or functionality/performance of a product or a service or the creation of a new one
decision
is a choice made from among available alternatives.
Settling Labor-Management Disputes grievance procedures
is a complaint by an employee that management has violated the terms of the labor-management agreement.
organizational structure
is a formal system of task and reporting relationships that coordinates and motivates an organization's members so that they can work together to achieve the organization's goals. with who reports to whom and who specializes in what work *** who reports to whom and who does what **** The set of shared, taken-for-granted implicit assumptions that a group holds and that determines how it perceives, thinks about, and reacts to its various environments the personality of the organization also called corporate culture
stability strategy
is a grand strategy that involves little or no significant change. Example: Without much changing their product, the makers of Timex watches decided to stress the theme of authenticity ("Wear it well") over durability (the old slogan was "It takes a licking and keeps on ticking").
defensive strategy
is a grand strategy that involves reduction in the organization's efforts. Example: The "big sales numbers that have sustained the recorded music business for years are way down, and it is hard to see how they could ever return to where they were even a decade ago," says one analysis. "The result is that the music industry finds itself fighting over pennies while waving goodbye to dollars."62 Principal sources of revenue are now largely the Page 204result of a 45% increase in streaming revenue, rather than from sales of CDs. There is also a growing but still specialized market for vinyl records.
performance appraisal or performance review
is a management process that consists of (1) assessing an employee's performance and (2) providing him or her with feedback Unlike performance management, which is an ongoing, interactive process between managers and employees, a performance appraisal is often dictated by a date on the calendar and can sometimes consist of a tense conversation that leaves both parties feeling unsatisfied
SWOT analysis
is a situational analysis in which a company assesses its strengths, weaknesses, opportunities, and threats. -realistic understanding of your organization in relation to its internal and external environments -Results from a SWOT analysis provide you with a realistic understanding of your organization in relation to its internal and external environments so you can better formulate strategy in pursuit of its mission
differentiation strategy
is to offer products or services that are of unique and superior value compared with those of competitors but to target a wide market. Because products are expensive, managers may have to spend more on R&D, marketing, and customer service. This is the strategy followed by Ritz-Carlton hotels and the makers of Lexus automobiles. The strategy is also pursued by companies trying to create brands to differentiate themselves from competitors. Bottled water brands like Dasani and Poland Spring invest in differentiation strategies based on packaging, convenience, health benefits, and even appeals to status, though their products are essentially all the same.75
levels of corporate strategy
level 1: corporate-level strategy level 2: business-level strategy level 3: functional-level strategy
The Equal Opportunity Employment Opportunity Commission
lists "cognitive tests, personality tests, medical examinations, credit checks, and criminal background checks" among the common types.
assess the current reality
look at where the organization stands internally and externally- what's working and what's not See what can be changed to increase efficiency and effectiveness in achieving the vision Use tools of competitive intelligence, SWOT analysis, forecasting, benchmarking. tools to assess current reality competitive intelligence Gaining information about one's competitors' activities so that you can anticipate their moves and react appropriately swot analysis Assessing the organization's Strengths, Weaknesses, Opportunities, Threat
reactive change
making changes in response to problems or opportunities as they arise.
encouraging new ideas
management scholar Gary Hamel says that companies such as Apple have been successful because they have been able to unleash the spirit of "strategy innovation"
BCG Matrix
management strategy by which companies evaluate their strategic business units on the basis of (1) their business growth rates and (2) their share of the market. *Business growth rate describes how quickly the entire industry is growing. *Market share is the business unit's share of the market in relation to competitors. -The purpose of evaluating each business unit in the company's portfolio is to identify the most effective way to direct the company's financial resources. **In general, the BCG matrix suggests that an organization will do better in fast-growing markets in which it has high market share rather than in slow-growing markets in which it has low market share.
strategy at panera bread
management to lead long term goals - strategic planning breaking goals into steps - tactical, smaller goals (continued to add businesses as time went on) collected data on what concepts to keep and discontinue 180 stores to 700 stores plan & control growth as CEO helps middle management achieve goals establishment set of vision statement that they have closely followed since 1994 compares goals to vision SWOT analysis focuses on most important challenges - many failed because they did not know how to grow panera did not rush to international markets keeps in touch with customers to solicit ideas feedback: industry was ranked #1 in concept - highest brand loyalty, highest food quality Ron (CEO) creates a great environment at all locations "people work for people not companies" focus on the local & employee level implementation of goals starts with quality hiring CEO has great conceptual skills employees have human skills middle managers need both it is the vision of the CEO that keeps the employees on task - inspires front-line employees to make front-line decisions
personality tests
measure such personality traits as emotional intelligence, social intelligence, resilience, personal adaptability, and need for achievement.
promotion
moving an employee to a higher-level position—is the most obvious way to recognize that person's superior performance (apart from giving raises and bonuses). Three concerns are the following. - fairness The step upward must be deserved. It shouldn't be for reasons of nepotism, cronyism, or other kind of favoritism. - nondiscrimination The promotion cannot discriminate on the basis of race, ethnicity, gender, age, or physical ability. others' resentments If someone is promoted, someone else may be resentful about being passed over. As a manager, you may need to counsel the people left behind about their performance and their opportunities in the future.
span of control
narrow or tall wide or flat or span of management, refers to the number of people reporting directly to a given manager
adverse impact
occurs when an organization uses an employment practice or procedure that results in unfavorable outcomes to a protected class (such as Hispanics) over another group of people (such as non-Hispanic whites)
workplace discrimination
occurs when people are hired or promoted - or denied hiring or promotion - for reasons not relevant to the job. Two fine points to be made here are that (1) although the law prohibits discrimination in all aspects of employment, it does not require an employer to extend preferential treatment because of race, color, religion, and so on and (2) employment decisions must be made on the basis of job-related criteria.
project planning at IDEO
not experts at the specific items themselves, expert at the process to create new products. -mix of professions so everyone brings something different to the table Stage 1: Definition- Big Picture; State the Problem, Assess Assumptions/Risks, Identify Goals/Objectives, Determine Budget/Schedule IDEO team was instructed to design a shopping cart that meets the needs of today's shopper. What might those needs be? Stage 2: Planning- Consider the details to make the big picture happen; identify facilities, equipment, people/duties, schedule, coordination efforts Stage 3: Execution- Work Stage; Define Management Style/Establish Controls IDEO teams needed to re-focus/re-group Stage 4: Closing- When the Project is Accepted by the Client IDEO presented cart to grocery store owners
unrelated diversification
occurs when a company acquires another company in a completely unrelated business. This strategy reduces risk because losses in one business or industry can be offset by profits from other companies in the corporate portfolio.
a systems approach to change
presupposes that any change, no matter how small, has a rippling effect throughout an organization used to diagnose what to change and determine the success of the change effort. - inputs - target elements of change - outputs - feedback
rational decision making stage 1 problems and opportunities
problems: difficulties that inhibit the achievement of goals: customer complaints, supplier breakdowns, staff turnover, sales shortfalls, competitor innovations, low employee motivation, and poor quality. opportunities situations that present possibilities for exceeding existing goals decision you're called on to make is how to make improvements - how to change conditions from the present to the desirable diagnosis - analyzing the underlying causes.
An organization has a sustainable competitive advantage when it can, for an extended period of time:
produce goods and services more effectively than its competitors do.
Competing Values Framework (CVF)
provides a practical way for managers to understand, measure, and change organizational culture
measurable
quantifiable. a way to measure the degree to which a goal has been reached
bad planning
results from: -faulty assumptions about the future -poor assessment of an organization's capabilities, -ineffective group dynamics, and failure to use management control as a feedback mechanism. a detailed plan may be comforting, but it's not necessarily a strategy
Disparate Treatment
results when employees from protected groups (such as disabled individuals) are intentionally treated differently.
periodically review performance
review progress, feedback, and objectives should be updated or revised as necessary to reflect new realities. feedback is essential for improving performance.
focused differentiation strategy
s to offer products or services that are of unique and superior value compared to those of competitors and to target a narrow market. Lush Ltd. is a UK-based brand of natural soaps and bath products for women who appreciate the company's respect for social and corporate responsibility and enjoy the unique in-store experience it offers. The company's products are handmade and never tested on animals. Lush has almost 4 million followers on Instagram and took in $530 million in North American sales in 2017. Says its director of brand communications for North America, "Lush's customer experience is what sets us apart . . . In this age when digital sales are soaring, we truly believe nothing compares to the in-store experience where customers can touch, feel and play with our innovative products and engage with our knowledgeable and passionate staff."
prosocial lying
sadly, it seems that some organizations prefer performance over ethics. Other studies show that individual differences play a role in unethical behavior. For example, compassionate people were found to engage in prosocial lying, such as to prevent others from feeling hurt or embarrassed or to help others financially. Prosocial lying helps others rather than yourself
Strategy or strategic plan
sets the long-term goals and direction for an organization. it represents an "educated guess" about what long-term goals or direction to pursue for the survival or prosperity of the organization or its principal parts. -a large-scale action plan that sets the long-term goals and direction for an organization An example of a strategy is " Grow the business organically ," which means "Increase revenue from existing and new customers rather than from acquiring other companies." However, strategy is not something that can be decided on just once. It generally is reconsidered every year because of ever-changing business conditions.
ethics officer
someone trained about matters of ethics in the workplace, particularly about resolving ethical dilemmas
organizational culture
sometimes called corporate culture, is defined as the set of shared, taken-for-granted implicit assumptions that a group holds and that determines how it perceives, thinks about, and reacts to its various environments * These are the beliefs and values shared among a group of people in the workplace that are passed on to new employees by way of socialization and mentoring, which significantly affect work outcomes at all levels.
strategy innovation
the ability to reinvent the basis of competition within existing industries "bold new business models that put incumbents on the defensive." - Gary Hamel
business model
the basic idea behind your business. -outlines the need the firm will fill, the operations of the business, its components and functions, as well as the expected revenues and expenses. -also describes the industry you're entering, how your product will be different, how you'll market to customers, how you're qualified to run the business, and how you will finance your business.
change agent characteristics
the individual who is a catalyst in helping organizations change—also consist of his or her individual differences, experiences, actions and inactions, and perceptions of change. ex: leadership style, personality, tactfulness, sense of timing, awareness of cultural traditions or group relationships, and ability to empathize with the employee's perspective
organizational socialization
the process by which a person learns the values, norms, and required behaviors which permit him to participate as a member of the organization Converting from outsider into organizational insider may take weeks or even years and occurs in three phases, researcher Daniel Feldman suggests—before one is hired, when one is first taken on, and when one has been employed a while and is adjusting to the job.
organizational design
the process of creating, selecting, or changing the structure of an organization choosing consciously
cascading goals
the process of ensuring that the strategic goals set at the top level align, or "cascade," downward with more specific short-term goals at lower levels within an organization, including employees' objectives and activities (Top managers set strategic goals, which are translated into divisional goals, which are translated into departmental goals, which are translated into individual goals. The cascading process ends when all individuals have a set of goals that support the overall strategic goals. This process helps employees understand how their work contributes to overall corporate success.)
contingency design
the process of fitting the organization to its environment
cost-of-living adjustment (COLA) clause
which during the period of the contract ties future wage increases to increases in the cost of living ** as measured by the U.S. Bureau of Labor Statistics's consumer price index (CPI). (An alternative is the wage reopener clause, which allows wage rates to be renegotiated at certain stated times during the life of the contract. Thus, a 10-year contract might be subject to renegotiation every two years.)
vision statment
what do we want to become? -long-term goal describing what an organization wants to become, where it wants to go strategically -clear sense of the future and how to get there
innovation strategy
which amounts to a plan for being more innovative, requires a company to integrate its innovation activities into its business strategies. This integration encourages management to invest resources in innovation and generates employee commitment to innovation across the organization.
subjective appraisals
which are based on a manager's perceptions of an employee's (1) traits or (2) behaviors. trait appraisals are ratings of such subjective attributes as "attitude," "initiative," and "leadership." Trait evaluations may be easy to create and use, but their validity is questionable because the evaluator's personal bias can affect the ratings. behaviorally anchored rating scale BARS which rates employee gradations in performance according to scales of specific behaviors
augmented inteligence
which describes most of the applications discussed above. Here, in a kind of "symmetry," according to Rao, an augmented intelligence system learns from human inputs in order to assist humans in making better decisions.