Management 300 Exam 2 Chapters 5-9
application form
A form that gives a company basic information about you.
small batch production
A type of manufacturing technology that involves the production of goods in batches of one or a few products designed to customer specification.
plan operations
Define operational goals and plans Select measures and targets Set stretch goals Crisis planning
When determining business-level strategy, managers consider what proportion of the firm's portfolio of businesses should be in different industries.
False
Trend management is looking at trends & discontinuities & imagining possible alternative futures.
False, this is the definition of scenario-building
The dog, according to the BCG matrix, is a poor performer.
True
The framework in which the organization defines how tasks are divided is called organizational structure.
True
The functional structure is best for internal efficiency goals in a stable environment.
True
The pure functional structure is important for achieving efficiency goals in stable environment.
True
To be effective, the amount of centralization or decentralization should fit the firm's strategy.
True
Uncertainty is when the goal is clear, but there is no clear solution to the problem.
True
Wage and salary surveys show what other organizations pay.
True
You can hire competitive intelligence professionals to scan the external environment for research.
True
nondirective interview
Type of interview in which interviewer asks open questions and provides general direction but allows applicant to guide process.
decision styles
differences among people with respect to how they perceive problems and make choices
Which decision style is used by people who prefer simple, clear-cut solutions to problems?
directive
work specialization
division of labor, degree to which organizational tasks are subdivided into individual jobs
Strategic goals/plans
done by senior management, adopted by the whole organization
Rightsizing
downsizing
responsibility
duty to perform the task or activity as assigned
unity of command
each employee is held accountable to only one supervisor
Inclusion
employees feel like esteemed member of a group that their uniqueness is highly appreciative
Affirmative Action
employees take positive steps to guarantee equal employment opportunities for people within protected groups
contingent workers
employees that include part-time workers, temporary workers, seasonal workers, independent contractors, interns, and co-op students
changing
intervention, agents teach people new behaviors and skills to guide them in using them in the workplace
coalition management
involved building an alliance of people who support a manager's goals and can influence other people to accept and work toward them. three key steps: 1. talk to customers and other managers 2. address conflicts 3. break down barriers and promote cross-silo cooperation
continuous process production
involved mechanism of the entire workflow and nonstop production
collaboration
joint effort between people from two or more departments to produce outcomes that meet a common goal or shared purpose and that are typically greater than what any of the individuals or departments could achieve working alone
Justifying past decisions
justify past decisions even if those decisions are no longer valid. When managers continue to pour money into a failing project, hoping to turn things around
job specification
knowledge, skills, education, physical abilities, and other characteristics needed to perform a job adequately.
question marks
low in market share high in business growth rate new ventures, risky- a few become stars, others are divested
dogs
low in market share low in business growth rate no investment, keep if some profit, consider divestment, only small share of a slow-growth market
execute the plan
management by objectives performance dashboards single use plans decentralized responsibility
diagnosis
managers analyze underlying casual factors associated with the decision situation
uncertainty
managers know which goals they wish to achieve, but information about alternatives and future events is incomplete
scenario building
managers look at trends and discontinuities and imagine possible alternative futures to build a framework within which unexpected future events can be managed
analytical style
managers prefer complex solutions based on a lot of data
opportunity
managers see potential organizational accomplishments that exceed current goals
classical model
managers use logic and full information to arrive at a decision that is in the organization's best interests
compensation
monetary payments and all non-monetary goods or benefits used to reward employees
focused differentiation
narrow and distinct -uses characteristics of differentiation strategy directed at particular target customer -values flexibility and customer intimacy -pushes empowerment to employees with customer contact
focused cost leadership
narrow and low cost -uses characteristics of cost leadership strategy directed at particular target customer -frequent detailed control reports -measures cost of providing product or service and maintaining customer loyalty
staff authority
narrower and includes the right to advise, recommend, and counsel in the staff specialists' area of expertise is a communication relationship
span of management
number of employees reporting to a supervisor
strategic goals
official goals, broad statements describing where the organization wants to be in the future, pertain to the organization as a whole
Crowdsourcing
open innovation approach, ideas from around the world and let's thousands of people participate in innovation process.
open innovation
opening up the search for new ideas beyond the organization's boundaries and allowing innovations to easily transfer inward and outward
problem
organizational accomplishments have failed to meet established goals
BCG matrix
organizes businesses along two dimensions - business growth rate and market share
top leader
oversees both the product and functional chains of command, is responsible for the entire matrix
Refreezing
people have incorporated new values, attitudes, and behaviors into their everyday work and the changes become institutionalized in the culture
bounded rationality
people have the time and cognitive ability to process only a limited amount of information on which to base decisions
line authority
people in management positions have the formal authority to direct and control immediate subordinates
accountability
people with authority and responsibility are subject to reporting and justifying task outcomes to those above them in the chain of command the mechanism through which authority and responsibility are brought to alignment
Behavorially Anchored Rating Scale (BARS)
performance evaluation technique that relates an employee's performance to specific job-related incidents.
project manager
person responsible for coordinating activities of several departments for the completion of a specific project
business growth rate
pertains to how rapidly the entire industry is increasing
strategy
plan of action that describes resource allocation and activities for dealing with the environment, achieving a competitive advantage, and attaining the organization's goals
porter's competitive strategies
popular model for formulating business-level strategy
crisis planning
prevention and preparation
job analysis
process of gathering and interpreting info about the essential duties, tasks, and responsibilities of the job
matrix boss
product or functional boss, who is responsible for one side of the matrix
new-venture fund
provides financial resources from which individuals or teams can draw to develop new ideas, products, or businesses
stretch goals
reasonable yet highly ambitious and compelling goals that energize people and inspire excellence
Significant company-wide change revision of its processes (more horizontal coordination) is called...
reengineering
Queen Bee Syndrome
refers to a female boss who not only has no interest in fostering the careers of other women but might even actively undermine them
technical complexity
refers to the degree to which complex machinery is involved in the production process to the exclusion of people
organizing
refers to the deployment of organizational resources to achieve strategic goals
reengineering
refers to the radical redesign of business processes to achieve dramatic improvements in cost, quality, service and speed
strategic management
refers to the set of decision and actions used to formulate and execute strategies that will provide a competitively superior fit between the organization and its environment so as to achieve organizational goals
competitive advantage
refers to what sets the organization apart from others and provides it with a distinctive edge for meeting customer or client needs in the marketplace
tactical goals/plans
responsibility of middle managers (major divisions, functions)
sterotype
rigid, exaggerated, irrational belief associated with a particular group of people
structured interview
set of standardized questions that are asked of every applicant so that comparisons can be made easily
organizational development (OD)
set of techniques for implementing planned change to make people and organizations more effective
horizontal linkage model
several departments, such as marketing, research, and manufacturing, work closely together to develop new products
wage and salary surveys
show what other organizations pay incumbents in jobs that match a sample of key jobs selected by the organization
employer brand
similar to a product brand except that it promotes the organization as a great place to work, rather than promoting a specific product or service
Brainstorming
uses face to face group to spontaneously suggest a broad range of alternatives for making a decision.
360-degree feedback
uses multiple raters, including self-rating, to appraise employee performance and guide development
Implementation
using managerial, administrative, and persuasive abilities to translate the chosen alternative into action
social learning
using social media tools to network and learn informally
halo effect
when manager gives employee the same rating on all dimensions of job, even if performance
Overconfidence
when people overestimate their ability to predict uncertain outcomes
risk propensity
willingness to undertake risk with the opportunity of gaining an increased payoff
fundamental characteristics of vertical organization structure
work specialization chain of command span of management centralization and decentralization
Organizational Development Managers help with mergers/acquisitions, organizational decline or revitalization, and conflict management.
True
Organizational change refers to the adoption of a new idea or behavior by an organization.
True
disruptive innovation
innovations in products, services, or processes that radically change competition in an industry
Team Advantages and Disadvantages
-breaks down barriers across departments -improved coordination and cooperation -compromise -adapt more quickly to customer requests and environmental changes and speeds decision making because decisions need to go to the top of the hierarchy for approval -morale boost -conflicts and dual loyalties -cross functional team may make different work demands on members than do their department managers -large amount of time devoted to meetings -too much decentralization
Matrix Advantages and Disadvantages
-can be highly effective in a complex, rapidly changing environment in which the organization needs to be flexible, innovative, and adaptable -conflict and frequent meetings generated by the matrix allow new issues to be raises and resolved -efficient use of HR -confusion and frustration caused by dual chain of command -matrix bosses and two-boss employees have difficult with the dual reporting relationship -high level of conflict because it pits divisional against functional goals -rivalry between the two sides of the matrix can be exceedingly difficult for two-boss employees to manage -time lost to meetings and discussions devoted to resolving this conflict
matrix approach
-combines both functional and divisional structures -improves horizontal coordination and information sharing -dual lines of authority -the vertical structure provides traditional control within functional departments; the horizontal structure provides coordination across departments
translate the plan
-define tactical plans and objectives -develop strategy map -define contingency plans and scenarios -identify intelligence teams
virtual network advantages and disadvantages
-flexibility and competitiveness on a global scale -can draw on resources and expertise worldwide to achieve the best quality and price and can sell its products and services worldwide -can continually redefine itself to fit new product and market -little supervision required -lack of hands on control -must rely on contracts, coordination, negotiation and electronic linkages higher uncertainty and greater demands on managers for defining shared goals, managing relationships, keeping people focused and motivated -employee loyalty can weaken
limitations of planning
-goals and plans can create a false sense of certainty -goals and plans may cause rigidity in a turbulent environment -goals and plans can get in the way of intuition and creativity
benefits of planning
-goals and plans provide a source of motivation and commitment -goals and plans guide resource allocation -goals and plans are a guide to action -goals and plans set a standard of performance
Divisional advantages/disadvantages
-more flexible and responsive to change -concern for customers' needs is high -cross-department coordination is better, better coordination exists within divisions -coordination across divisions is poor -problems can occur when autonomous divisions go in opposite directions -duplication of resources and the high cost of running separate divisions -loss of efficiency and economy of scale -lack of technical specialization, expertise and training due to the small size of departments
Organizational planning process
1. develop the plan 2. translate the plan 3. plan operations 4. execute the plan 5. monitor and learn
people change
A change in the attitudes and behaviors of a few employees.
after-action review
A disciplined procedure whereby managers review the results of decisions to evaluate what worked, what didn't, and how to do things better.
matching model
A human resources approach in which the organization and the individual attempt to match each other's needs, interests, and values.
Sterotyping
A performance evaluation error that occurs when a manager places an employee into a class or category based on one or a few traits or characteristics.
employment tests
Assesses candidates on various factors considered important for the job to be performed and include cognitive ability tests, physical ability tests, and personality tests
Discrimination
Behaving differently, usually unfairly, toward the members of a group.
The bias in when looking only at the previous year's sales to estimate sales for the coming year is called...
Being influenced by initial impressions
Administrative Model
Bounded rationality and satisficing. Describes how managers make decisions in situations characterized by uncertainty and ambiguity.
Which of the following factors is NOT associated with larger span of control? A-Work performed by subordinates is routine and stable. B-Subordinates perform similar work tasks. C-Subordinates are located at various locations. D-Rules and procedures defining task activities are available.
C-Subordinates are located at various locations.
selection
Choosing from among qualified applicants to hire into an organization
reverse innovation
Creating innovative, low-cost products for emerging markets and then quickly and inexpensively repackaging them for sale in developed countries.
Collaboration refers to the managerial task of adjusting among different individuals and departments.
False
Cost leadership is strategy seeking to distinguish its materials from that of competitors.
False
Filling two vacancies in a department is a nonprogrammed decision
False
Front-line managers have the final responsibility for strategic planning.
False
In a job interview, this question is legal: "Have you ever been injured on the job and filed for workers' compensation?"
False
In the strategic approach to human resource management, organizations use screening model when they are trying to find the right people.
False
Lack of trust is perhaps the biggest obstacle to organizational change.
False
Making a choice is the most significant part of the decision-making process.
False
Most organizations that cut benefits during the recent recession plan to restore them.
False
Organizing defines what to do while strategy defines how to do it.
False
People change starts with training everyone in the organization.
False
Reengineering means preserving the past by establishing the sequence of activities by how work was done.
False
Restraining forces are problems/opportunities that provide motivation for change.
False
Solicitation with the promise of reward is the highest level of sexual harassment.
False
relational coordination
Frequent horizontal coordination and communication carried out through ongoing relationships of shared goals, shared knowledge, and mutual respect.
This structure can result in poor communication across departments & decisions can get backed up at the top of organization.
Functional
Focusing manager and employee efforts on activities goal attainment is a benefit of...
Management by objectives
conceptual style
Managers like a broad amount of information
managing diversity
Managing a culturally diverse workforce by recognizing the characteristics common to specific groups of employees while dealing with such employees as individuals and supporting, nurturing, and utilizing their differences to the organization's advantage.
team building
OD intervention that enhances cohesiveness by helping groups of people learn to work together as a team
directive style
People who prefer simple, clear-cut solutions to problems
_____ departments include all of those that provide special skills in support of _____ departments.
Staff; line
performance appraisal
The process of observing and evaluating an employee's performance, recording the assessment, and providing feedback.
A person who sees the need for and champions productive change is called an idea champion.
True
Across different situations, the most effective managers change their decision style.
True
Framework in which the org defines how task, resource, & coordination is organizational structure.
True
If you group departments w/common skills & activities, it's called vertical functional approach.
True
Perpetuating the status quo
When managers base decisions on what has worked in the past and fail to explore new options
plan
a blueprint for goal achievement and specifies the necessary resource allocations, schedules, tasks, and other actions
technology change
a change in the organization's production process - how the organization works
product change
a change in the organization's products or services
decision
a choice made from available alternatives
point-counterpoint
a group decision-making technique that breaks people into subgroups and assigns them to express competing points of view regarding the decision
culture change
a major shift in the norms, values, attitudes, and mind-set of the entire organization
devil's advocate
a person who is assigned the role of challenging the assumptions and assertions made by the group to prevent premature consensus
Realistic Job Preview (RJP)
a preview of a job that provides both positive and negative information about the job and the company
job evaluation
a process that determines the worth of each job in a company by evaluating the market value of the knowledge, skills, and requirements needed to perform it
sterotype threat
a self-confirming concern that one will be evaluated based on a negative sterotype
programmed decision
a simple, routine matter for which a manager has an established decision rule
certainty
a situation in which a manager can make accurate decisions because all outcomes are known
new-venture team
a unit separate from the mainstream organization that is responsible for initiating and developing innovations
diversity of perspective
achieved when a manager creates a heterogeneous team made up of individuals with diverse backgrounds and skill sets
vertical functional
activities are grouped together by common function from the bottom to the top of the organization groups positions into departments based on similar skills, expertise, work activities and resource use- HR, accounting, engineering
recruiting
activities or practices that define the desired characteristics of applicants for specific jobs
diversity
all the ways in which employees differ
large-group intervention
an OD approach that brings together people from different parts of the organization to discuss problems or opportunities and plan for change
corporate university
an in-house training and development facility that offers broad-based learning opportunities for employees
idea incubator
an organizational program that provides a safe harbor where employees can generate and develop ideas without interference from company bureaucracy or politics
characteristics of effective goals
are specific and measurable, have a defined time period, cover key result areas, are challenging but realistic, are linked to rewards
acceptance theory of authority
argues that a manager has authority only if the subordinated chose to accept his or her commands
internship
arrangement whereby an intern exchanges services for the opportunity to gain work experience and see if particular career is appealing
intuition
aspect of administrative decision making that refers to quick comprehension of a decision based on past experience but without conscious thought.
Key performance indicators (KPIs)
assess what is important to the organization and how well the organization is progressing toward attaining its strategic goal
Unfreezing
aware of problems and the need for change
Ethnocentrism
belief in the superiority of one's own ethnic group
electronic brainstorming
brings people together in an interactive group over a computer network, rather than meeting face to face
Differentiation
broad and distinct -acts in a flexible, loosely knit way, strong coordination among departments -strong capability in basic research -creative flair, thinks "out of the box" -strong marketing abilities -rewards marketing abilities -rewards employee innovation -corporate reputation for quality or technological leadership
cost leadership
broad and has low cost -strong central authority; tight cost controls -maintains standard operating procedures -easy-to-use manufacturing technologies -highly efficient procurement and distribution systems -close supervision; finite employee empowerment
mission statement
broadly stated definition of purpose that distinguishes the organization from others of a similar type
acqui-hiring
buying an early-stage start-up in order to obtain the creative talent
Innovation by acquisition
buying start-up companies to get innovative products and services, and usually the talent that created them
exit interview
departing employees to determine reasons for their departure and learn about potential problems in the organization
Pluralism
describes an environment the organization accommodates several subcultures, including employees who would feel isolated and ignored
Goal
desired future circumstance or condition that the organization attempts to realize
planning
determining the organization's goals and defining the means for achieving them
SWOT analysis
careful examination of strength, weaknesses, opportunities and threats that affect organizational performance
chain of command
chain of command is an unbroken line of authority that links all employees in an organization and shows who reports to whom
opportunities
characteristics of the external environment that have the potential to help the organization achieve or exceed its strategic goals
threats
characteristics of the external environment that may prevent the organization from achieving its strategic goals
organization chart
characteristics or vertical structure are portrayed in the organization chart, which is the visual representation of an organization's structure
flat structure
characterized by an overall broad span of management and relatively few hierarchical levels
tall structure
characterized by an overall narrow span of management and a relatively larger number of hierarchical levels
service technology
characterized by intangible outputs and direct contact between employees and customers
mass production
characterized by long production runs to manufacture a large volume of products with the same specifications
satisficing
choosing the first alternative that satisfies minimal decision criteria, regardless of whether better solutions are presumed to exist.
risk
clear-cut goals and good info is available, future outcomes with each alternative are subject to chance
Quasirationality
combining intuitive and analytical thought
escalating commitment
continuing to invest time and money in a decision despite evidence that is failing
One of the problems is marketing peeps never communicate with production people. This is poor...
coordination
nonprogrammed decision
crafts a unique solution to a new and unstructured problem
exploration
creativity, bottom-up approach internal contests idea incubators
cross-functional team
cross-functional team is composed of employees from about the same hierarchical level, but from different areas of expertise
monoculture
culture accepts only one way of doing things and one set of values and beliefs
centralization
decision authority is located near the top of the organization
decentralization
decision authority is pushed downward to lower organization levels
behavorial style
deep concern for others
develop the plan
define mission, vision set goals
strategic plans
define the action steps by which the company intends to attain strategic goals
organization structure
defined as the framework in which the organization defines how tasks are divided, resources are deployed, and departments are coordinated
normative
defines how a manager should make logical decisions and provides guidelines for reaching an ideal outcome
market share
defines whether a business unit has a larger or smaller share than competitors
the heart of strategy is to...
deliver value to customers
synergy
exists when the organization's parts interact to produce a joint effect that is greater than the sum of the parts acting alone
on the job training
experienced employee is asked to teach a new employee how to perform job duties
outsourcing
farming out certain activities
management by means
focuses people on the methods and processes used to attain results, rather than on the results themselves
authority
formal and legitimate right of a manger to make decisions, issue orders, and allocate resources to achieve organizationally desired outcomes -is vested in organizational positions, not people -flows down the vertical hierarchy -is accepted by subordinates
evidence based decision making
founded on a commitment to examining potential biases, seeking and examining evidence with rigor, and making informed and intelligent decisions based on the best available facts and evidence
Seeing what you want to see
frequently looking for info that supports their instinct or point of view and avoid into that contradicts it
team approach
gives managers a way to delegate authority, push responsibility to lower levels, and be more flexible and responsive in a complex and competitive global environment. entire organization is made up of horizontal teams that coordinate their work and work directly with customers to accomplish the organization's goals
bottom-up approach
giving everyone a month off from their regular duties to come up with creative ideas for new products and services
Being influenced by initial impressions
giving too much weight to the past can lead to poor forecasts and misguided decisions
Goal vs plan
goals specify future ends; plans specify today's means
Ambiguity
goals/problems are unclear, alternatives are difficult to define, and info about outcomes is unavailable
divisional structure
groups employees and departments based on similar organizational output, such that each division has a mix of functional skills and tasks. Decentralized form, separate divisions can be organized with responsibility for individual products, services, product groups, major projects or programs, divisions, businesses or profit centers.
stars
high in market share high in business growth rate rapid growth and expansion
cash cows
high in market share low in business growth rate exists in a mature, slow growth industry but is a dominant business in the industry, positive cash flow
Being influenced by emotions
higher performing traders- effective regulation of emotions was a characteristic lower performing traders- less effective in managing and modulating their emotional responses
monitor and learn
hold planning reviews hold operational reviews
cooperation
horizontal coordination mechanisms customers partners open innovation
descriptive
how managers actually make decisions, rather than how they should make decisions
innovation roles
idea champions new venture teams skunkworks new venture fund
contingency planning
identifies important factors in the environment and defines a range of alternative responses to be taken in the case of emergencies, setbacks, or unexpected conditions
operational plans/plans
identify the specific procedures or processes needed at lower levels, frontline managers and supervisors develop operational plans that focus on specific tasks and processes and that help meet tactical and strategic goals.
pay for performance
incentive pay, a portion of compensation to employee effort and performance
ambidextrous approach
incorporating structures and processes that are appropriate for both the creative impulse and the systematic implementation of innovations
coalition
informal alliance among managers who support a specific goal or solution
Skunkworks
informal, autonomous, secretive groups that focus on breakthrough ideas
core competence
something that the organization does particularly well in comparison to others
strategy formulation
stage of strategic management that includes the planning and decision making that lead to the establishment of the organization's goals and a specific strategic plan
strategy execution
stage of strategic management that involves the use of managerial and organizational tools to direct resources toward achieving strategic outcomes
job description
summary of specific tasks and responsibilities of the job
survey feedback
survey employees to gather opinions about corporate values, leadership, participation. Meet in small groups to share results and brainstorm solutions to problems.
management by objectives
system whereby managers and employees define goals for every department, project, and person and use them to monitor subsequent performance. 1. set goals 2. develop action plans 3. review progress and take corrective action 4. appraise performance
elements of competitive advantage
target customers exploit core competence create value achieve synergy
task force
temporary team or committee formed to solve a specific short-term problem involving several departments
group think
tendency of people in groups to suppress contrary opinions in a desire for harmony
Ethnorelativism
the belief that groups and subcultures are inherently equal
panel interview
the candidate meets with several interviewers who take turns asking questions
Human Resource Management (HRM)
the design and application of formal systems to ensure the effective and efficient use of human talent to accomplish organizational goals
human capital
the economic value of the combined knowledge, experience, skills, and capabilities of employees
virtual network structure
the firm subcontracts most of its major functions to separate companies and coordinates their activities from a small organization at headquarters
human resource planning
the forecasting of HR needs and the projected matching of individuals with expected vacancies
creativity
the generation of novel ideas that may meet perceived needs or respond to opportunities for the organization
glass ceiling
the invisible barrier that separates women and minorities from top management positions
coordination
the managerial task of adjusting and synchronizing the diverse activities among different individuals and departments
mission
the organization's reason for existence. The mission describes the organizations' values, aspirations and reason for being.
prejudice
the tendency to view people who are different as being deficient
two-boss employees
those who report to two supervisors must work with senior managers to reach joint decisions
decentralized planning
top executives of planning experts work with managers in major divisions or departments to develop their own goals and plans
tactical plans
typically have shorter time horizon