HRM Exam #2

Effective SMART goal:

"By the Fall of 2018, I will seriously train for and enter four marathons in southeastern Pennsylvania and I will finish first in my age class in at least one of them."; relevant to where you want to go

"Herd mentality"

- Wall Street - Consumers - "Real estate is safe"

Rating agencies

-- Conflicts of interest -- Rating financial products

Lots of cheap $$$

-- Fed (low interest rates) -- Demand from China and Middle East

Short-term plans last how long?

1 year or less

Long-term plans last how long?

1-5 years

CSR Activities:

1. Environmental 2. Philanthropic 3. Community involvement 4. Ethics training and activities for employees

CSR Negatives:

1. Some oppose CSR: * Distracts from core missions: to maximize profit for shareholders * Can distract from unethical business practices (like Ronald McDonald houses distracting from unhealthy food) * Can provide cover for controversial industries (tobacco, alcohol, munitions, etc.)

Kinds of competencies:

1. Threshold 2. Differentiating

Resonant environment:

A work environment characterized by excitement, energy, optimism, efficacy, and hope KNOW

"Rank and Yank" Systems

Also known as "forced rankings" or "forced distribution". Annual exercise popularized by CEO Jack Welch at GE; popularized by GE, these systems are brutal and they are going away; 10 percent of the work force has got to be fired

Cost leadership

Being most competitive (lowest priced) in terms of cost of product or service. (Wal-Mart); when a company decides they are gonna lower their price

Hope:

Being optimistic about the future and feeling that you can attain your goals

Job enrichment:

Building in more intrinsic motivators, such as opportunities for learning, travel, exposure to leadership opportunities and executives, and more. Ex.) sending an employee on a business trip to London

Niche

Catering to a particular segment of the market or a particular demand. (IKEA) product that goes after a certain market

Retrenchment

Defensive posture to hold off threats while turning a company around. (JC Penney); we are in trouble and we are going to retool our selfs and come back in a year- McDonalds with breakfast

Emotional Intelligence

EQ; different way of being smart; how we handle ourselves and how we handle other people. Is not "fixed" at birth (like IQ)- but rather we learn and get better over time (maturity) EQ is twice as important as IQ; critical if you want to advance in work

Engagement Spectrum consists of:

Engaged, not engaged, actively disengaged

Growth

Expansion into new market(s) and/or increasing market share expanding business, acquiring or merging with other businesses, or joint ventures. (Google, Ford); usually young company

Strategy

How we will fulfill our vision - the overarching approach/ directional signal; may have many plans and within those plans are goals

CSR in action:

In global research conducted by the Reputation Institute: * Who you are matters more than what you do * In other words: your corporate reputation means more to people than what you make

The link between motivation and psychology are:

Intrinsic Motivation and Extrinsic Motivation

Standing Plans

On-going plans that guide tasks that are performed repeatedly within an organization; over and over again

Differentiation

Providing unique products, services, or features. (Apple)

Vertical integration

Seeking cost savings and efficiency through operating businesses along the supply chain. when a company looks at itself and asks how do we drive efficiency by cutting costs

Divestiture

Selling off or folding a particular division because a company has become so big so its easier to manage. (CitiGroup, AIG)

Contingency Plans

Special plans to handle emergencies, setbacks, or other conditions outside of the norm; the what if plans/ special plans in an emergency- if there is a fire we are going to meet here

SMART Goals

Specific Measurable Attainable Relevant Time Based

Plans

Step-by-step outline of how we get from Point A to Point B

Goals

Steps and metrics within the plan

Ethical organization

Working in an organization that is ethical and has a noble purpose

Being self aware:

a clear understanding of your strengths, weaknesses, thoughts, beliefs, emotions

Cognitive compentencies

able to see the "big picture" and creating a "whole" from many parts; "how do I design a building that fits in this big neighborhood so it fits into the area around it"

Corporate strategy

designed for the entire organization

Relational competencies

developing strong relationships with colleagues, customers, executives, etc. "How do I get along with the people who are working for me/ client that is paying me"

Operating workers (front line)

do work directly affecting customer/client satisfaction

Participants:

engaged, making an effort

Activists:

feel strongly and show it

Leaders

guide and inspire; appeal to our hearts; sometimes you have both leaders and managers in one person

Bystanders:

not engaged

______ and ______ are joined at the hip.

reputation; trust

Glass steagall act

separated investment banking; nobody can self regulate; 1998 is when Citicorp moved with. travelers to become Citigroup- huge mistake

Business strategy

supports a particular division of the business, brand, product, or service line

Mission

the business we are in right now

Trust

the degree to which behavior, experience, and reputation give us confidence in a person, institution, organization, etc.

Threshold competencies

those abilities that are necessary to do a job - the bare minimum required

Vision

where we want to be in the future; the dream

Slow work rate and supervisor request faster work- employee increases work rate

will be given positive reinforcement or avoidance learning

Google's mission statement:

"Google's mission is to organize the world's information and make it universally accessible and useful."

Job enlargement:

"Growing" a job by combining several simple, small jobs into a larger job. * is an increase in job tasks and responsibilities to make a position more challenging. ** It is a horizontal expansion, which means that the tasks added are at the same level as those in the current position. ** After performing the same position for a while, employees can get bored.*

Ineffective SMART goal:

"I will be the best long-distance runner in southeastern Pennsylvania."

Amazon's vision statement:

"Our vision is to be the earth's most customer centric company; to build a place where people can come and discover anything they might want to buy online."

Johnson and Johnson's Credo:

"The values that guide our decision-making are spelled out in Our Credo. Put simply, Our Credo challenges us to put the needs and well-being of the people we serve first."; analyzed their stakeholders; patience and customers, employees, communities where they do business, shareholders. If we do all this we will be successful and shareholders will make a lot of money

Nike's mission statement:

"To bring inspiration and innovation to every athlete* in the world *If you have a body, you are an athlete"

underwater mortgage

(of a loan) having a balance that exceeds the current market value of the loan

Not engaged:

* "Checked out" * Sleepwalking * Put in time -- but not energy or passion into their work * May or may not "go the extra mile"; 50 percent of employees

Mission statements

* "The business we are in right now" * Serves to unite organization * Articulates how we differ from our competition * Provides a rationale for decision-making and allocation of resources

High Performance Work Attitudes:

* 2 attitudes that may relate to performance; and are very closely related are: 1. job satisfaction: "how happy am i in my job?" 2. Employee engagement: "how motivated am i to work for my employer?"

Employee Engagement:

* It is discretionary effort*; up to the employees if they are going to engage/disengage * Ranges from engaged to actively disengaged * Clear links between employee engagement and and organization's financial success * Engagement can also drive ethical behavior* * Leaders in the field are Gallup, and the HR consulting companies such as Towers Watson and Aon Hewitt

EQ and Managing People

* Major factor in business success * Key to managing people * Key to success on teams * Essential for leadership

Competency Model

* Map with desired leadership competencies * Tailored for an organization or job Research shows strong link between Relational Competencies and leadership effectiveness *framework for defining the skill and knowledge requirements of a job. It is a collection of competencies that jointly define successful job performance.

Actively disengaged:

* Negative drag on the culture * "It's not my job." * May well sabotage company initiatives and employee goodwill * No company loyalty * Undermine what engaged coworkers accomplish; small part of company; 17 percent of employees

Engaged:

* Passionate and enthusiastic * Feel profoundly connected to the company * Drive innovation * Move the company forward * Eagerly go the "extra mile"*; 80/20 rule; 32 percent of employees

Values statements

* Statement of "how we intend to do business" * Underpinning of culture * Should form basis of performance management system * Critical that it reflects actual business practice

Whats Hot: Barrons June 27, 2015

** Annual Most Respected Companies as determined by professional investors (money-managers) ** Only survey of corporate reputation from this group ** 100 largest companies in the world determined by stock market capitalization

How real estate crashed the economy cont.

** Real estate values rose rapidly **You buy a house for $200,000 ** Six years after you buy the home, it is appraised for $350,000. You still owe $150,000 on your first mortgage. ** You take out a home equity loan for $150,000 ** Pay your child's first two years of college ** Re-model your kitchen ** Buy a sports car ** Real estate values plummet and now your house is worth $150,000 ** You have a total mortgage obligation of $300,000 (you are "under water") ** Now imagine that you lose your job

Stakeholder

*** any person, group, or organization that could be impacted by an organization's actions. * Primary stakeholders are directly affected by an organization's actions. (people who have a share in the organization) * Secondary stakeholders are indirectly affected by an organization's actions. (customers)

What makes work meaningful?

*Being self-aware *Hope *Resonant environment *Inspirational leadership *Ethical organization

Training

*Manager training *identifying risk *training around risks *multiple venues

Equity Theory:

*all about people's perceptions of fairness 1. Am i getting what i think i deserve 2. Are my contributions and my rewards equal to what others are contributing and getting as a reward?; if we don't judge our situation to be equal- we will lose motivation

Types of compensation:

*base wage or salary *bonus *commissions *stock options

Need for achievement:

*challenge *personal goals *success

Infrastructure

*formal compliance systems *background checks *whistle-blowing systems *policy *performance management system

Need for power:

*influence *control *responsibility *social status

Communication

*open culture *manager training *values everywhere *robust communication up, down and across

Leadership

*role models *communicators *discipline/reward *keepers of the culture

Need for affiliation:

*warm, fulfilling relationships

Investment Banks

-- Go public -- No "skin" in the game

Innovation

-- Math whiz kids create complex products -- No one really understood what these products were

"Rank and Yank" system ranks workforce into 3 categories:

1. "A" players (top 20%)- Loved and nurtured 2. "B" players (middle 70%)- must improve performance 3. "C" players (bottom 10%)- Fired

Financial Crisis 2008-2009 Contributing Factors:

1. "Herd mentality" 2. Investment Banks 3. Lots of Cheap $$$ 4. Rating Agencies 5. "Innovation"

Sub-prime mortgages

1. "Liar" Loans 2. No $ down, no income verification 3. Consumers bought more than they could afford 4. Big hedge funds saw the problem with the market and bet that these would fail (after they worked with the banks to construct the riskiest offerings) - they made billions

Corporate Social Responsibility (CSR)

1. Also known as corporate conscience, corporate citizenship, or responsible business 2. Self-regulation built into an organization's business model whereby it monitors and ensures compliance with: * Spirit of the law * Ethical standards * International norms; companies desire to be a good corporate citizen

How do you improve your EQ?

1. Become emotionally literate * What feelings are you feeling? Name them. * Feeling words: accepted, rejected, left out, criticized, judged, mocked, appreciated, supported, uncomfortable, etc. 2. Take responsibility for your feelings * "I feel angry" rather that "You make me angry" 3. Use your feelings to help make decisions * "How will I feel if I do this?" 4. Show respect for other people's feelings * "How will you feel if I do this?" 5. Validate what other people are feeling * Show empathy, understanding, acceptance of other's feelings; being self aware

Corporate Reputation

1. Belief, impressions, opinions about an organization all create "reputation." 2. Reputation is formed and communicated by multiple stakeholder groups: employees, customers, suppliers, business partners, the media, the general public, regulators, etc.

Incentives:

1. Big rewards for short-term thinking among companies and individuals

Organization levels:

1. Board of Directors 2. Top executives 3. Team leaders and managers 4. Operating Workers 5. Customers and Clients

Peter Drucker and Modern Management:

1. Born in Austria in 1909 - died in California in 2005 2. Management consultant, author (41 books), educator 3. Considered the father of modern management 4. His big ideas: * Management by objectives * Knowledge workers * Decline of blue collar work * Outsourcing * Decentralization and simplification * Importance of culture; know that he is huge in this area and came up with management by objectives cycle

Why study motivation?

1. By understanding why people behave the way they do 2. Managers can exercise leadership to achieve positive results; which can "grow" employee engagement; The end goal is making your employee's motivated to engage in work and excel in everything they do.

Mulally's Revolution at Ford:

1. Communicate an inspiring vision * "One Ford, One Team" 2. Make your values known * One Ford - Working together always works, etc. UNDERSTAND WHAT HE DID; he didn't talk he listening and said we are no longer working against each other we are all on the same team- no competition and we have to be brutally honest with eachother- what are the weaknesses and strengths in our company

Managers and feedback

1. Consistent feedback is essential 2. It shouldn't be just a once-a-year event 3. If done right, it can be highly motivating 4. Problem is that many managers don't give feedback: * It makes them uncomfortable * They don't know how to give feedback, especially negative feedback * They don't have time

How J&J recovered:

1. Consumers and Physicians- *Hotline, coupons, letters, 1 million presentations to MD's 2. Employees and Retirees- *Videos, letters, "Ask your pharmacist to restock the Tylenol" 3. Public- *videos for TV, Tamper-resistant packaging, Executives interviewed by various media 4. Retailers- *discounts, advertising allowances, full refunds *** Quarterly report to stockholders and J&J corporate relations professionals visited 160 Congressional offices

Managers cont.

1. Control resources and projects 2. Problem solve 3. Seek efficiency and order 4. Concerned with how things get done 5. Involved with the day-to-day and "here and now"

Shadow Financial Market:

1. Credit Default Swaps 2. Securitized Mortgages ("slice & dice") 3. Derivatives 4. Hedge Funds

Benefits to a good reputation:

1. Customers want to buy your products and services and will pay more 2. Best talent wants to work for you 3. Investors want to buy your stock 4. Other companies want to do business with you 5. Regulators and the press are willing to give you the benefit of the doubt 6. Communities want you to do business in their area

Traditional Performance Management Programs:

1. ESTABLISH goals for the organization, the various departments and subsidiaries in an organization, and for each individual employee 2. TRACK progress against goals throughout the year 3. MEASURE the end results of employee/department/organizational effort 4. REWARD those efforts *goals are set at every level

Fulfillment off the Job:

1. Education, religion, hobbies, personal growth 2. Approval of family, friends and community 3. Family, friends, community groups 4. Freedom from war, pollution, violence 5. Food, water, shelter--- same idea as Maslow's hierarchy of needs

Regulatory Climate

1. Glass-Steagall Act (1933) repealed in 1998 2. Debt regulations for banks eased 3. "Markets can self-regulate" 4. Revolving door between regulators and companies 5. "Government is the problem"

Ask for feedback

1. If your manager doesn't give you feedback, ask for it 2. Don't assume that no feedback is positive feedback 3. If your manager isn't giving you feedback, ask for it: * "How am I doing?" * "How can I improve what I'm doing?" * "Is there anything I'm doing that isn't working or that I should change?"

Feedback

1. Information given to you by your manager or your peers (and even customers) about your performance. * It can be positive: "The way you're doing that is terrific." * It can be negative: "You should pay more attention to XYZ." * It can be neutral: "One thing you should watch for is X." * Bottom line: it's advice on how to be good at your job

Why should companies care about ethics?

1. Its the right thing to do 2. Its expensive to ignore (damage to reputation, legal fees) 3. When the companies align elements of internal brand (strategy, values, leadership, and rewards) around ethics and integrity- and effectively communicate them, it helps to create an ethical culture: ** Aids in talent attraction and retention ** Results in a better decision-making process across the organization ** Builds reputation with all stakeholder groups - the "Trust Bank" ** Increases employee engagement (or commitment)

What are the 3 HR techniques to motivate:

1. Job enrichment 2. job enlargement 3. job rotation

Tylenol: What happened?

1. Johnson and Johnson- October 1982 2. Seven Chicago-area consumers died after ingesting Tylenol that had been laced with cyanide 3. No indication if the sabotage was internal or external or at what point in the supply chain it occurred 4. 100 FBI agents investigated 2,000 leads 5. No one was ever charged with the crime

Experts Analysis of J&J Success:

1. Kept communication channels open 2. Took quick corrective action 3. Kept faith in the product 4. Protected the public image at all costs 5. Aggressively brought back the brand

what are the four sections of ethical culture?

1. Leadership 2. Communication 3. Infrastructure 4. Training

Purposes of Goals and Plans:

1. Legitimacy/mission statement 2. Source of motivation and commitment 3. Rationale for decisions 4. Guides to action 5. Resource allocation 6. Standard of performance; all about holding people to a standard of performance, motivating people, rational for all decisions

Daniel Pink: What motivates us?

1. Money is a motivator only in rote tasks 2. Whenever the job requires brainpower, money actually decreases performance 3. What motivates us? * Self-direction/determination (autonomy) * Mastery (being good at something) * Purpose (working toward something worthwhile)

Three- Needs Theory:

1. Need for achievement 2. Need for affiliation 3. Need for power

Misconceptions of EQ:

1. Not just about "being nice" * It may in fact be about confronting someone with a truth they have been avoiding 2. Not about giving "free rein" to emotions * It means managing feelings so that they are expressed appropriately and effectively*

Fulfillment on the Job:

1. Opportunities for training, advancement, growth, and creativity 2. Recognition, high status, increased responsibilities 3. Work groups, clients, co-workers, supervisors 4. Safe work, fringe benefits, job security 5. Heat, air, base salary

The Goals/Results Loop

1. Organization Goals 2. Business Unit/ Department goals 3. Individual Goals 4. Individual results 5. business unit/ department results 6. organization results

Planning is important:

1. People and organizations need plans to help them attain their dreams 2. If you don't know where you're going, any path will get you there 3. Plans need to contain metrics, so you'll know where you are

Board of Directors responsibilities:

1. Provide guidance to organization's executives - be a sounding board 2. Oversee corporate governance 3. Approve organizational initiatives and strategy 4. Approve executive compensation 5. Oversee organizational policy and finances 6. Act in the interests of the company's shareholders is the main reason for existing- they can be sewed if they do not do that

Leaders cont.

1. Provide resources to motivate 2. Are comfortable with uncertainty and ambiguity 3. Function well in chaos 4. Concerned with "now" but focused on the future 5. Focused like a laser beam on the culture and people

Financial Crisis 2008-2009 Direct Causes:

1. Regulatory Climate 2. Shadow Financial Market 3. Sub-prime mortgages 4. Incentives

In brief:

1. Rotten mortgages sold to investment banks 2. investment banks package them in securities 3. credit agencies say, "They are AAA: Perfectly safe 4. Banks sell rotten mortgage packages to investors 5. AIG sells credit default swaps ("insurance") 6. banks sell rotten mortgage packages to investors

Maslow's Hierarchy of Needs Theory:

1. Self Actualization Needs- represents the need for self- fulfillment; add value to your life 2. Esteem Needs- desire for a positive self-image and to receive attention 3. Belongingness Needs- desire to be accepted by one's peers 4. Safety Needs- safe and secure physical and emotional environment 5. Physiological needs- most basic human physical needs *has become less popular over time- not well supported by research; start at the bottom and work yourself up; know basic understanding

CSR

1. Some models of CSR go beyond compliance and engage in activities that are: * Beyond what is required by the law * Beyond the interests of the organization * Designed to further some societal good

Plans drive high performance:

1. Start with a strong missions and vision 2. Set stretch goals for excellence 3. Create a culture that encourages learning 4. Understand that planning still begins and ends at the top of the organization

Most important factors in being the most respected company:

1. Strong Management 2. Sound strategy 3. Ethical Practices 4. Competitive Edge 5. Shareholder Orientation 6. Consistent Profitability

How real estate crashed the economy with incremental changes- baby steps: 1990s and earlier

1. The bank that gave you the mortgage, kept it until you paid it off: * You had to have a substantial down payment in cash - 5 - 20% of the total cost of the home * You had to have a steady job * Your mortgage could not equal more than 25-30% of your monthly net income * You had to have an excellent credit rating; ALL ABOUT FRAUD

How real estate crashed the economy with incremental changes- baby steps: 2000-2008

1. The bank that gave you the mortgage, sold it to Wall Street investors: * You could get 100% financing for a home - 0% down payment * Most lenders didn't require that you have a job * Most lenders didn't check to see how much your mortgage was as a percentage of your take-home pay * Credit ratings weren't all that important

Why manage performance?

1. To align the organization behind established goals 2. To drive desired behavior and ingrain that behavior in the culture ("customer service," "ethics," "innovation," etc.) 3. To motivate employees and reward their achievements; every company has to have a system in order to drive employees

CSR Benefits:

1. Triple bottom line: "People, Profit, Planet" 2. Helps recruit and retain talent 3. Helps limit risks 4. Differentiates brand 5. Reduces scrutiny 6. Improves supplier relations

Plans contain:

1. Vision of where you want to be 2. Goals 3. Who is responsible for what 4. Deadlines 5. Everything needed to keep a project on track

EQ: women and men

1. Women are not "better at this" than men * Women may be more aware of their emotions, show more empathy, be more adept interpersonally * Men may be more self-confident and optimistic, adapt more easily, handle stress better * Plenty of crossover - men and women tend to be equally good at EQ

Keys to effective leadership:

1. emotional competence (EQ)- effective leadership 2. power- influential leadership 3. ethics- responsible leadership; using power effectively and being ethical

Factors that influence pay and benefits:

1. employee tenure and performance? 2. kind of job? 3. kind of industry? 4. is it unionized? 5. labor/ capital intensive? 6. management philosophy? 7. geographic location 8. company performance? 9. size of company? 10. how long has the employee been employed? at what level of performance? 11. does it require a high level of skill? 12. high tech vs. retail? 13. union employees generally all get the same pay raise? 14. labor/capital intensive business is more costly; often less $ for salaries 15. lead or lag market? 16. nyc vs cincinnati 17. highly profitable or not? 18. multinational or Mom and Pop?

Scenario Planning

1. often used by businesses and the military 2. imagine the "what ifs" in future situations * "What if there's a transit strike on the day of our event?" * "What will we do if it rains on our outdoor wedding?" * "What do we do if our largest competitor launches a product similar to ours the week before our planned launch?"

Vision statement

1. our highest aspirations 2. must be clear and compelling 3. must inspire 4. paints a picture of a future state to which the organization can aspire

Peter Drucker's MBO Process Cycle:

1. set Corporate Objectives 2. set and align employee objectives 3. monitor performance 4. evaluate performance 5. reward employees *he is very huge in this area because he came up with this process cycle*

Competency

A competency is a capability or ability: * Includes both intent and action (willingness to do something and actually doing it) * Can be directly linked to how well someone does on the job

Job satisfaction indicators:

A positive attitude towards your job: * "My work matches my needs and interests" * "My working conditions are satisfactory" * "My pay and benefits are satisfactory" * "I like the people I work with" * "I like my boss" (a critical factor)

Compensation is a critical motivator:

Benefits of a fair, effective, and appropriate compensation system- *helps attract and retain high-performance employees *impacts the strategic performance of the firm; you want to know that you are being payed fairly; lots of influences on how much money you make; high tech tends to make more than others; unionized gets the same raise; management philosophy- we want to pay our people- keep our compensation as low as it can be (big companies make more vs small.) London, los Angelos, Tokyo make more

360- Degree Feedback:

Collect feedback on an individual employee from a variety of sources: *Self-assessment *Manager *Direct reports *Colleagues & peer *Customers *Vendors or business partners;

Michael Porter's Five Forces

Competitive rivalry within an industry- bargaining power of suppliers, bargaining power of customers, threat of new entrants (is someone going to come in like Netflix), threat of substitute products; have to come up with new playbook for newer generations

Managers

Control people and production; allocate and deploy resources; appeal to our brains; they seek efficiency

Single Use Plans

Developed to achieve a set of goals that are unlikely to be repeated in the future; built alter- not going to build any more

Behavior affects trust- negative effect:

Exxon's Valdez: * Mishandled the problem from the beginning * Leadership did not take responsibility - blamed everyone else * 40,000 consumers cut up their Exxon credit cards * Exxon is still paying reparations - $4.5 billion in punitive damages alone * Press and regulators are hyper-vigilant for any missteps by Exxon * Limited trust because of past behavior

Hygiene Factors:

Factors that either create or eliminate job dissatisfaction, but don't result in motivation. Both physical and psychological aspects of a job can lead to dissatisfaction, including pay, working conditions, your manager and/or colleagues, job security, etc.

Motivators:

Factors that positively influence motivation, such as recognition, responsibility, achievement, and opportunities for growth and development.

Example of feedback:

Imagine you're bowling and there's a sheet stretched across the lane, so you can't see what happens to the bowling ball after you throw it. The only way you know how you're doing is if your manager, Pat, tells you. * What would happen if Pat only told you about strikes? * What would happen if Pat only told you about gutter balls? * The only way you'll know how you're doing is if Pat tells you how you're doing consistently - good and bad

Job rotation:

Increasing satisfaction by rotating employees from one job or one job site to another. * is a management approach where employees are shifted between two or more assignments or jobs at regular intervals of time in order to expose them to all verticals of an organization*

Behavior affects trust- positive effect:

Johnson & Johnson's Tylenol: * J&J: benchmark for "how to do it right" * Even so, experts declared the Tylenol brand "dead" * J&J reintroduced Tylenol with tamper-resistant packaging * Tylenol regained market share within months * Press and regulators gave J&J benefit of doubt with other difficulties - "halo" effect lasted for years

Stability

Maintaining current market position. (Coca-Cola); usually old company trying to hold competitive position

Extrinsic motivation:

Motivation that comes from outside of yourself - a reward or compliment, or increased status, etc. It comes from someone else. somebody giving you a motivator. Ex.) A person who writes music to sell for profit is using extrinsic motivation.

Business Ethics:

Principles, values, and beliefs that define what is right and wrong behavior.

Pro and Con of "Rank and Yank" Systems:

Pro- Forces managers to have "tough" discussions with employees Con- Breeds mistrust among employees and between employees and management

Strategic planning

Process of defining strategy or direction and making decisions on the allocation of resources to pursue this strategy. This generally involves a "big picture" view of the organization - both internally and externally -providing a frank, honest assessment of where the organization is right now and how it is going to achieve its future vision. looking at the market place and how you fit in it

What is strategy?

Strategy is a "big picture" directional approach - generally long term - that helps an organization achieve something major: a new business, a competitive position, a vision, etc.

SWOT Analysis:

Strengths Weaknesses Opportunities Threats

Values

The qualities that define "how" we do business and that drive our culture of an organization; drive culture

Intrinsic motivation:

Think of "self-satisfaction." A feeling of satisfaction that you get from the work itself. There are no external rewards beyond the feeling of accomplishment or satisfaction. Proud of what you have done. Ex.) someone who writes music for his own listening pleasure is relying on intrinsic motivation.

Team leaders and managers

help the operating workers do their jobs and solve their problems

Stakeholder Analysis:

identify all stakeholders and analyze how each will be affected by an organization's decisions and/or actions

Positive Reinforcement:

increases likelihood that positive behavior will be repeated Ex.) praise employee/ recommends pay rise; "Great Job"

Avoidance Learning:

increases likelihood that positive behavior will be repeated because they want to avoid getting yelled at Ex.) avoid reprimands, negative statements; "Ill stop criticizing"

Top executives

keep organization's mission and strategies clear

Strategy links everything:

mission, vision, long-term strategic goals, short-terms goals, tactics and action

There are no ___________ to a good reputation. It does take time and attention to build a good reputation. Once built, it can be damaged very quickly and take years to rebuild

negatives

Alignment is critical:

organizations need to be aligned from top to bottom; everyone needs to be pulling in the same direction

Diehards:

passionate, give it their all

Punishment:

reduces likelihood that behavior will be repeated Ex.) reprimand employee, make negative statements; "Speed it up! Whats wrong with you?"

Extinction:

reduces likelihood that behavior will be repeated (taking away) Ex.) withhold raises, merit pay; "No raise for you"

Board of Directors

serves as expert counsel to top executives and company shareholders; corporate governance which includes all laws and regulations which determines long term viability of an organization- there to make sure that a company is being governed well and obeying laws and regulations. also approve compensation of employees

The Two-Factor Theory includes:

states that there are certain factors in the workplace that cause job satisfaction, while a separate set of factors cause dissatisfaction. 1. Motivators 2. Hygiene Factors

Differentiating competencies

those abilities that set someone apart and support outstanding performance; what makes your competencies better than someone else's

With ______- almost anything is possible. Without it- everything is more difficult

trust

Customers and clients

ultimate beneficiaries of the organization's efforts

Isolates:

unplugged, indifferent, nonresponsive

Technical compentencies

using tools and processes specific to a field; technical aspects of the job- "how much concrete are we going to have to pour" - architect

Slow work rate and supervisor requests faster work- employee continues slow work

will be given punishment or extinction

Inspirational leadership:

working for leaders who have noble goals and treat people with respect