Principles of Management Strategic Planning Competency

The 3-Phase Process: a Structure for Organizational Change

introduced in 2002 Built in 3 phases Phase 1 Define your change management strategy Prepare your change management team develop your sponsorship model Phase 2 managing change comm. plan sponsor roadmap training plan coaching plan resistance management plan Phase 3 Collect and analyze Change Disgnose

Purpose of the Value Chain Analysis

analysis helps a company review its supply chain and logistics to maintain a competitive advantage.

the functioning of every organization depends on the use of

authority

Key elements of vertical org. structure

authority span control delegation and decentralization give an idea of how managers and employees relate to one another on diff. levels

Specialization

different people or groups often perform specific parts of the larger task.

Two fundamental concepts around which organizations are structured

differentiation and integration.

Approaches to Bureaucratic Control

feedforward, concurrent, and feedback

Feedforward control

future oriented aims to prevent problems before they arise ex. companies have policies defining the scope within which decisions are made.

ID and apply approaches to gaining cooperation on organizational change initiatives

three basic stages required Unfreezing- breaking from the old ways of doing things Moving- instituting change Refreezing- reinforcing and supporting the new ways

Integration is achieved

through structural mechanisms that enhance collaboration and coordination

Entrepreneurs Finance their ventures

1) own money 2) Loan from family or friend 3) Loan from bank ( need collateral) 4)venture capital ( crowd funding investors)

Entrepreneurs increase their chances of success in planning their ventures

1)Opportunity analysis- description of G&S, assessment opportunity, assessment of you the entre., resources and activities needed to translate idea. 2) Business Plan- Formal planning step focuses on entire venture, describes all elements involved in starting it. 3) Key planning 4)Selling plan 5)Legitimacy- ppl's judgement of a company's acceptance. Helps overcome the liability of newness, helps acquire other resources top manager, good employees, financial resources, government support.

The Control Cycle

1. Setting performance standards. 2. Measuring performance. 3. Comparing performance against the standards and determining deviations. 4. Taking action to correct problems and reinforce successes.

A Conventional Organization Chart

1. The boxes represent different work. 2. The titles in the boxes show the work performed by each unit. 3. Reporting and authority relationships are indicated by solid lines showing superior-subordinate connections. 4. Levels of management are indicated by the number of horizontal layers in the chart. All persons or units that are at the same rank and report to the same person are on one level.

ID the common characteristics that entrepreneurs possess

1. Commitment & determination 2. Leadership 3. Opportunity obsession 4. Tolerance of risk, ambiguity 5. Creativity, self-reliance, ability to adapt 6. Motivation to excel

ID the various stages of conflict process

1. Potential opposition and incompatibility 2. Cognition & Personalization 3. Intentions 4. Behavior 5. Outcome

Research on Change Management Methodology

Applying a structured approach to change management has remained a top contributor for over ten years

Describe what Dr. Ohmae's Strategic Triangle is and how the three components relate to each other

any business unit must take into account three key players: the company itself, the competition, and the customer Managers use their strengths to create value by meeting customer requirements better than competitors do.

Prosci ADKAR MODEL

Used for Ind. Change acronym for Awareness of the need for change Desire to participate in and support the change Knowledge on how to change Ability to implement required skills and behaviors Reinforcement to sustain the change

Intraprenership and concepts of bootlegging & skunkworks

a manger w/in a company who promotes innovative product development and marketing Two common approaches 1) Skunkworks- project teams to produce a new product ( taking risk, being innovative) 2) Bootlegging- Informal work projects, other than officially assigned, of employees' own choosing and initiative. Allow ppl freedom to pursue pet projects w/out monitoring progress.

How can a large organization promote and maintain the spirit of entrepreneurship and innovation

by promoting Entrepreneurial Orientation = To ID and capitalize on opportunities to launch new ventures by entering new or est. markets w/ new or existing Goods or services Determined by 5 tendencies allow independent actions innovate take risk be proactive competitively aggressive

Describe the key aspects of the job-characteristics model of organizing and describing jobs

well-designed jobs lead to high motivation, high-quality performance, high satisfaction, and low absenteeism and turnover. These outcomes occur when people experience three critical psychological states 1. They believe they are doing something meaningful because their work is important to other people. 2. They feel personally responsible for how the work turns out. 3. They learn how well they perform their jobs.

Divison of Labor

work of the org. is subdivided into smaller tasks Various individuals and units throughout the organization perform different tasks

what's and how's of QC & QA

• Quality Control - What: The activities or techniques used to achieve and maintain the product quality, process and service. - How: Finding & eliminating causes of quality problems through tools & equipment so that customer's requirements are continually met. • Quality Assurance - What: Prevention of quality problems through planned and systematic activities including documentation. How: Establish a good quality management system and the assessment of its adequacy& conformance audit of the operation system & the review of the system itself

Every organization has goals:

profitability, innovation, satisfaction of customers and employees, standard targets that establish desired performance levels, motivate performance, and serve as benchmarks against which to assess actual performance

Describe strategic human resource management

4 strategic impact 1. Creates value 2. Is rare 3.Is difficult to imitate. 4.Is organized. People are a source of competitive advantage when their skills, knowledge, and abilities are not equally available to all competitors. These four criteria highlight the importance of people and show the closeness of HRM to strategic management.

Horizontal Structure

A decentralized power structure allow more staff more control over business matters according to their expertise. The Org. must subdivide- departmentalize 1) Line Department-deal directly with the organization's primary goods or services 2) Staff Department- specialized or professional skills that support line departments. research, legal, accounting, public relations, and human resources departments 3) Functional Organization- specialized and grouped according to business functions production, marketing, human resources, research and development, finance, accounting, and so forth 4)divisional organization- restructure to group all functions into a single division and duplicate each of the functions across all the divisions

Types of Corporate strategies

Business strategy major actions by which a bus. competes in a particular industry or market Low- cost strategy build competitive advantage by being efficient and offering a standard no frills product Differentiation Strategy Company attempts to be unique in its industry market segment that customers value competitive advantage Functional Strategy implemented by each functional area of the org. to support the org. business strategy.

Describe constructive conflict, why it can be beneficial to organizations and what structured processes can be used to encourage it.

CC air legitimate differences stay task related be impersonal play devils advocate it can be beneficial by making good ideas great, and great ideas amazing. Cognitive conflict is best to encourage CC bc it puts issue-based differences into perspective or judgement. Can air legitimate differences of options and develop better ideas and solutions

Understanding the Prosci 3 Phase Change Management Process

Change management requires both an individual and an organizational perspective

Phase 3 Reinforcing Change

Collect and analyze feedback Diagnose gaps and manage resistance implement corrective actions and celebrate successes Measuring changes in behavior Corrective action plans Reinforcement mechanisms Individual and group recognition approaches Success celebrations After-action review

Ways to become a better communicator cross- culturally

Consider the receiver's background cultural as well as technical adjust lang. accordingly receiving don't assume your understanding is the same as the speakers. Learn something about the country's lang. and customs. word choice

Phase 1 preparing for change

Define your change management prepare your change management team Develop your sponsorship team How much change management does this project need?" "Who is impacted by this initiative and in what ways?" "Who are the sponsors we need to be involved to make this initiative successful?"

Apply Entrepreneurial Strategy Matrix to asses an entrepreneurial

Depicts ventures along two dimensions innovation risk Innovation *New venture may involve high or low levels of innovation and creativity ( something new and different) Risk * probability of financial loss High innovation, low risk * novel ideas w/little risk High innovation, high risk * high financial investments * competition is great Low innovation, low risk * require min. investments * face minimal competition for strong market demand low innovation high risk

Phase 2 Managing Change

Develop change management plans take action and implement plans

Change management methodology is chosen for ease of use

Easy to implement Easy to understand Easy to communicate to others Simple Practical Structured and systematic Logical Comprehensive and holistic

Describe the essential activities req. in leading change initiatives

Education and Comm. Participation & Involvement Facilitation& Support Negotiation& Reward Manipulation & Cooptation Explicit & Implicit Coercion

Describe the steps in the Strategic Planning process.

Est. mission, vision, and goals analysis of Internal strengths and weaknesses Analysis of external opportunities and threats SWOT analysis and strategy formulation Strategy Implementation Strategic Control

Forward integration strategy is effective when:

Few quality distributors are available in the industry. Distributors or retailers have high profit margins. Distributors are very expensive, unreliable or unable to meet firm's distribution needs. The industry is expected to grow significantly. There are benefits of stable production and distribution. The company has enough resources and capabilities to manage the new business.

Backward integration strategy is most beneficial when:

Firm's current suppliers are unreliable, expensive or cannot supply the required inputs. There are only few small suppliers but many competitors in the industry. The industry is expanding rapidly. The prices of inputs are unstable. Suppliers earn high profit margins. A company has necessary resources and capabilities to manage the new business.

Understand the difference of forward and backwards vertical integration

Forward integration is a strategy where a firm gains ownership or increased control over its previous customers (distributors or retailers). This strategy is implemented when the company wants to achieve higher economies of scale and larger market share. Selling their products directly to consumers, bypassing retailers. Backward integration is a strategy ( making goods for itself) where a firm gains ownership or increased control over its previous suppliers.

Programming

Human Resources activities employee recruitment employee selection outplacement training and development performance appraisal reward system labor relations

Corporate Strategies

ID's the set of businesses, markets or industries in which an organization competes and the distribution of resources among those businesses

Describe what Porters Five model is and how its used in the Strategic planning process.

It helps managers analyze the competitive environment and adapt to or influence the nature of their competitors.

Two types of Business Strategies that companies use to gain competitive advantage.

Low- Cost Strategies by offering a no Frills product Differentiation Strategy being unique in its industry or market segment.

identify and understand the difference between mechanistic and organic organizational structures

Mechanistic is a form of organization that seeks to maximize internal efficiency ( Weber's bureaucracy) take orders from bosses more subordinates Organic organization work more as teammates than subordinates emphasizes flexibility less rigid

Planning

Org. strategic planning HRM Environmental scanning Labor Markets Tech. Legislation Competition Economy Human Resources Planning Demand forecast Internal labor supply External Labor Supply Job analysis

Explain what a " boundarlyless" organization is and what it means for organizations

Organization in which there are no barriers to information flow Information available as needed moving quickly and easily enough the organization functions far better as a whole than as separate parts.

Describe what a Quality Audit is and entails

Periodic, independent, and documented examination and verification of activities, records, processes, and other elements of a quality system to determine their conformity with the requirements of a quality standard such as ISO 9000. Also called conformity assessment or quality system audit. Any failure in their proper implementation may be published publicly and may lead to a revocation of quality certification

ID the key tech. used in the employment and selection process in an Org.

Selection- builds on recruiting and involves decisions about whom to hire app & Resumes Interviews- ( structured & unstructured) Ref. check Background check personality test cog. test drug test performance test integrity test

Define what the Value chain means

Sequence of activities that flow from raw materials to the delivery of a G or S Add. value created at each step

Distinguish between quality assurance and quality control

Quality Control just measures and determines the quality level of products or services. It is a process itself. • Quality Assurance is a complete system to assure the quality of products or services. It is not only a process, but a complete system including also control. It is a way of management.

Evaluating

Results productivity quality innovation satisfaction turnover absenteeism health

Explain the components of a SWOT analysis and how it is used in the strategic planning process

S= strength, W= weakness, O= opportunities, T= Threats Help executive formulate strategy SWOT analysis helps managers summarize the relevant, important facts from their external and internal analysis SWOT analysis to take advantage of available opportunities by capitalizing on the organization's strengths, neutralizing its weakness, and countering potential threats.

Levels of planning Describe the Concept of strategic vision(intent) mission and goals

Strategic vison-- points to the future, where the organization is headed and what it will become. most effective VS inspire ppl Mission- Basic purpose of the organization, it describes what the organization does, for whom it does it, basic goods and service, and its values. Goals- evolve from the mission and vision of the organization Ex: Enhance citizen engagement in city issues. The chief executive officer of the organization, with the input and approval of the board of directors, establishes the mission, vision, and major strategic goals.

Common reasons behind entrepreneurial success and failure.

Success 1)Risk Successful entrepreneurs are realistic about risk, they anticipate difficulties and cushion their business to help w/setbacks. 2)Role of the Economic Environment to succeed entrepreneurs must have foresight and talent to survive when environment become hostile. 3) Business Incubators protect small and new businesses low rent and shared costs Failure 1) you might not enjoy it 2) Survival is difficult 3) Growth creates new challenges 4) hard to delegate 5) misuse of funds 6) poor control

Differentiation

The Organization's internal environment created by job specialization division of labor

Describe the fundamental concept of the organization chart Division of Labor and Coordination

The chart provides a picture of the reporting structure (who reports to whom) and the various activities that are carried out by different individuals.

Organizational Chart

The reporting structure and division of labor in an org.

What's Reengineering and how organizations use Customer Relationship Management tools to better understand and meet their needs

cutting cost by focusing on what the customer wants and how the value chain can be improved, "If you were the customer, how would you like us to operate?" answer to the question forms a vision for how the org. should run = decisions are made actions are taken to make org. run like the vision CRMT= product development, order fulfillment, customer service, inventory management, billing, and production are redesigned from scratch as if the organization were brand new and just starting out.

Bureaucratic Control System

designed to measure progress toward set performance goals if not met apply corrective measures to ensure performance

Concurrent Control

takes place while plans are carried out heart of any control system producing the right quantity and quality of the right product

Integrated

the degree to which differentiated work units work together and coordinate their efforts

coordination

the procedures that link the various parts of an org. for the purpose of achieving the org. overall mission

Board of Directors perform at least three major sets of duties

(1) selecting, assessing, rewarding, and perhaps replacing the CEO (2) determining the firm's strategic direction and reviewing financial performance (3) ensuring ethical, socially responsible, and legal conduct.

Vertical organizational structure

A vertical structure is also known as a centralized organization. In business, it relies on top level managers to run smoothly. it encompasses management span of control, reporting relationships and a centralized management staff that holds the position of power.

ID and describe the various conflict styles and how conflict strategies function in an organization

Avoidance- ppl do nothing to satisfy themselves or others. Ignore problems Accommodation- cooperating on behalf of the other party, not being assertive about ones own interest Compromise- Mod. attention to both parties concerns. neither highly cooperative nor assertive Competing- Highly competitive response, ppl focus on their own wishes, unwilling to recognize other ppl concerns collaboration- emphasizes both cooperation and assertiveness.

Describe the type of corporate strategies that organizations can use

Concentration= focused on a single business competing in a single industry. Ex. food retailing- Kroger, Safeway, etc. Vertical Integration= The acquisition or development of new businesses that produce parts or components of the organization's product Used to eliminate uncertainties and reduce cost associated w/suppliers or dist., Concentric Diversification= Add new business that produces related products or are involved in related markets or activities. in contrast is... Conglomerate Diversification= CS that involves expanding into unrelated bus. or unrelated markets and activities BCG Matrix Market growth and relative competitive position star, question mark, cash cow or dog

ID and understand the importance of statistical analysis in TQM models/methodologies

Continuous improvement requires integrative mechanisms that facilitate group problem solving, information sharing, and cooperation across business functions.

Main ideas behind Six Sigma quality- control tools

Systematically analyzing work process to ID and eliminate all causes of defects Standardizing process allows lowest practicable level of customer dissatisfaction Higher the sigma level, lower amount of variation. product or process is defect free 99.99966 percent of the time. fewer than 3.4 defects or mistakes per million

Describe what a TQM system is and how implementing one benefits an organization

TQM is a comprehensive approach to improving product quality customer satisfaction strong orientation toward customers (external and internal) Implemented by: TQM reorients managers toward involving people across departments in improving all aspects of the business Concept of Cont. Improvement= Kaizen meeting customers needs Improving the Value Chain Organization Adds value from R&D-----> Services

Explain what Core Competency/Capabilities mean for an organization "Resources and Core Capabilities"

its a unique skill and /or knowledge an organization possesses that gives it an edge over competitors. Resources are valuable rare inimitable and organized ex. Honda has a core competency in SMALL ENGINE DESIGN and MANUFACTURING SONY HAS CC IN MINITURIZATION CC typically refers to a set of skills or expertise in some activity rather than physical or financial assets,

Describe what a Matrix and Network Org. structure is

matrix composed of dual reporting relationships some employees report to 2 bosses functional & divisional network- collection of independent, mostly single-function firms that collaborate to produce a good or service Network organizations are flexible arrangements among designers, suppliers, producers, distributors, and customers

Feedback Control

performance data have been gathered and analyzed results returned to something or someone and corrections are made Timing is important

how HR planning can benefit the organization

planning programming evaluating a strategic purpose derived from the organizations plans.

ID key quality management approaches such as Deming's 14 points

set of management practices to help companies increase their quality and productivity: 1. Create constancy of purpose for improving products and services. 2. Adopt the new philosophy. 3. Cease dependence on inspection to achieve quality. 4. End the practice of awarding business on price alone; instead, minimize total cost by working with a single supplier. 5. Improve constantly and forever every process for planning, production and service. 6. Institute training on the job. 7. Adopt and institute leadership. 8. Drive out fear. 9. Break down barriers between staff areas. 10. Eliminate slogans, exhortations and targets for the workforce. 11. Eliminate numerical quotas for the workforce and numerical goals for management. 12. Remove barriers that rob people of pride of workmanship, and eliminate the annual rating or merit system. 13. Institute a vigorous program of education and self-improvement for everyone. 14. Put everybody in the company to work accomplishing the transformation