Management

Functional authority

delegated to and individual or department over specific activities undertaken by personnel in other departments

How to reinforce task ownership

delegating new tasks to team members to broaden their experience

Type of cost always to take into account

direct (others: indirect, fringe, activity based)

SROI (social return on investment)

-form of measurement that can be used by nonprofits -assigns a financial value to charitable activities so that nonprofits can measure their social benefits

Most common cause of project management failure

drift

Cross-functional team

-functional teams: composed of a manager and his or her subordinates for a particular functional area -cross-functional teams: made up of experts in various specialties (or functions) working together on various organizational tasks

Nash equilibrium

-game theory -Alice and Bob are in Nash equilibrium if Alice is making the best decision she can, taking into account Bob's decision while Bob's decision remains unchanged, and Bob is making the best decision he can, taking into account Alice's decision while Alice's decision remains unchanged

Self-actualization

-expressing one's creativity, quest for spiritual enlightenment, pursuit of knowledge, and the desire to give to and/or positively transform society are examples of self-actualization (Goldstein) -final level of psychological development that can be achieved when all basic and mental needs are fulfilled within the hierarchy of needs theory (Maslow)

Reward

-extrinsic (bonuses, promotions, time off, special assignments, verbal praise, etc.) -intrinsic ("natural high"--competency, personal development, self-control over work) -rewards should satisfy needs, be included in the system, be distributed fairly, be multifaceted

SOW, requisition

(in that order)

Negotiation/BATNA

*provides a standard against which any proposed negotiated agreement should be measured -best alternative to a negotiated agreement -point of leverage rather than safety net -when hard negotiators meet soft ones, the hard win but potentially damage the relationship

Mature worker theory

- contrasts the management practices found in traditional organizations with the needs and capabilities of the mature adult personality -Argyris

Motivation

- defined as the force that causes an individual to behave in a specific way Methods: -empowering -rewards -job enlargement/horizontal job loading (more variety of tasks a job includes) -job rotation -job enrichment/vertical job loading (more responsibility and authority) -flexibility: compressed workweek, job sharing or twinning (one job split between two people), telecommuting

Unemployment Compensation for Ex-Servicemembers program

--> unemployment insurance agency in soldier's state

Equal Pay Act

-1963/JFK/New Frontier -law amending the Fair Labor Standards Act, aimed at abolishing wage disparity based on sex -the law provides (in part) that: No employer having employees subject to any provisions of this section shall discriminate, within any establishment in which such employees are employed, between employees on the basis of sex by paying wages to employees in such establishment at a rate less than the rate at which he pays wages to employees of the opposite sex in such establishment for equal work on jobs[,] the performance of which requires equal skill, effort, and responsibility, and which are performed under similar working conditions, except where such payment is made pursuant to (i) a seniority system; (ii) a merit system; (iii) a system which measures earnings by quantity or quality of production; or (iv) a differential based on any other factor other than sex [...]

Civil Rights Act

-1964/Johnson -justified by Article 1, Section 8 of Constitution (interstate commerce) and 14th and 15 Amendments -outlaws discrimination based on race, color, religion, sex, or national origin -prohibits unequal application of voter registration requirements, racial segregation in schools, employment, and public accommodations

ADA

-1990 -law that prohibits discrimination against individuals with disabilities in all areas of public life, including jobs, schools, transportation, and all public and private places that are open to the general public -ADAAA (amendments) 2009 changed definition of disability

Organizational control techniques

-financial responsibility and budget controls (top-down budgeting, bottom-up budgeting, zero-based budgeting, flexible budgeting) -marketing controls (market research, test marketing, marketing statistics) -human resource controls -computers and information controls (performance limitations, behavioral limitations, health risks)

FMLA

-1993 -labor law requiring covered employers to provide employees with job-protected and unpaid leave for qualified medical and family reasons; these include pregnancy, adoption, foster care placement of a child, personal or family illness, or family military leave -FMLA is administered by the Wage and Hour Division of the United States Department of Labor. -Act allows eligible employees to take up to 12 work weeks of unpaid leave during any 12-month period to attend to the serious health condition of the employee, parent, spouse or child, or for pregnancy or care of a newborn child, or for adoption or foster care of a child -an employee must have been at the business at least 12 months, and worked at least 1,250 hours over the past 12 months, and work at a location where the company employs 50 or more employees within 75 miles -the FMLA covers both public- and private-sector employees, but certain categories of employees are excluded, including elected officials and their personal staff members

Cultural relativism

-Boas -the principle of regarding the beliefs, values, and practices of a culture from the viewpoint of that culture itself -in sociology, the principle is sometimes practiced to avoid cultural bias in research, as well as to avoid judging another culture by the standards of one's own culture (considered an attempt to avoid ethnocentrism) -related to but often distinguished from moral relativism, the view that morality is relative to a standard, especially a cultural standard

Disputes bewteen buyers and sellers

-DRS: dispute resolution system -negotiation, mediation, arbitration -has more benefits than litigation

Pareto principle/rule

-Juran named it after Pareto -(also known as the 80/20 rule, the law of the vital few, or the principle of factor sparsity) -states that, for many events, roughly 80% of the effects come from 20% of the causes ("vital few")

Theory X and theory Y

-McGregor -authoritarian (Theory X) and participative (Theory Y) -X can lead to high turnover and Y might lead people to lose focus -X favored by large organizations and Y by organizations with flatter structure where people at lower levels have more authority X -believe team members dislike work and have little motivation -authoritarian style and hands-on Y -believe people take pride in work and see it as a challenge -trusting and participative style

Six sigma

-Motorola, 1993 -techniques to improve quality of output by identifying and removing causes of defects and minimizing variability -uses empirical, statistical methods and creates infrastructure of people within the organization who are experts -follow defined sequence of steps and have specific value targets

Employment laws

-National Labor Relations Act (1935) -Age Discrimination in Employment Act (1967+) -Occupational Safety and Health Act (1970) -Vietnam Veteran's Readjustment Assistance Act (1974) -Mandatory Retirement Act (1978) -Immigration Reform and Control Act (1986) -Worker Adjustment and Retraining Notification Act (1988) -Employee Polygraph Protection Act (1988) -Family and Medical Leave Act (1993)

TQM: five principles

-Produce quality work the first time. -Focus on the customer. -Have a strategic approach to improvement. -Improve continuously. -Encourage mutual respect and teamwork.

Cause & effect diagram (Fishbone/Ishikawa/Herringbone/Fishikawa Diagram)

-Professor Kaoru Ishikawa created Cause and Effect Analysis in the 1960s -uses a diagram-based approach for thinking through all of the possible causes of a problem -4 steps: 1. Identify the problem. 2. Work out the major factors involved. 3. Identify possible causes. 4. Analyze your diagram.

4 elements of a project

-Scope: This involves the project's size, goals, and requirements. -Resources: You'll need people, equipment, and materials in place. -Time: This doesn't just address how much time the project will take overall. It must be broken down into task durations, dependencies, and critical path. -Money: Have a firm grasp on costs, contingencies, and profit.

Crosby

-TQM In 1979, he left ITT (International Telephone and Telegraph) and wrote his book, Quality is Free, in which he argues that dollars spent on quality and the attention paid to it always return greater benefits than the costs expended on them. Whereas Deming and Juran emphasized the sacrifice required for a quality commitment, Crosby takes a less philosophical and more practical approach, asserting instead that high quality is relatively easy and inexpensive in the long run. Crosby is the only American quality expert without a doctorate. He is responsible for the zero defects program, which emphasizes "doing it right the first time," (DIRFT) with 100 percent acceptable output. Unlike Deming and Juran, Crosby argues that quality is always cost effective. Like Deming and Juran, Crosby does not place the blame on workers, but on management. Crosby also developed a 14‐point program, which is again more practical than philosophical. It provides managers with actual concepts that can help them manage productivity and quality. His program is built around four Absolutes of Quality Management: Quality must be viewed as conformance to specifications. If a product meets design specifications, then it is a high‐quality product. Quality should be achieved through the prevention of defects rather than inspection after the production process is complete. According to Crosby, the traditional quality control approach taken by American firms is not cost effective. Instead, production workers should be granted the authority and responsibility to ensure that quality goods or services are produced at every step of the process. Managers need to demonstrate that a higher standard of performance can lead to perfection—to zero defects. Crosby believed that the company goal should be zero defects. Quality should be measured by the price of nonconformity. Crosby contends that the costs associated with achieving quality should be part of a company's financial system.

Operational goals

-first-level managers -day-to-day plans

Juran

-TQM The Union of Japanese Scientists and Engineers (JUSE) invited Juran to Japan in the early 1950s. He arrived in 1954 and conducted seminars for top‐ and middle‐level executives. His lectures had a strong managerial flavor and focused on planning, organizational issues, management's responsibility for quality, and the need to set goals and targets for improvement. He emphasized that quality control should be conducted as an integral part of management control. Intrinsic to Juran's message is the belief that quality does not happen by accident; it must be planned. Juran sees quality planning as part of the quality trilogy of quality planning, quality control, and quality improvement. The key elements in implementing company‐wide strategic quality planning are in turn seen as: identifying customers and their needs; establishing optimal quality goals; creating measurements of quality; planning processes capable of meeting quality goals under operating conditions; and producing continuing results in improved market share, premium prices, and a reduction of error rates in the office and factory. Juran's formula for results is to establish specific goals to be reached, and then to establish plans for reaching those goals; assign clear responsibility for meeting the goals; and base the rewards on results achieved. Juran believes that the majority of quality problems are the fault of poor management, not poor workmanship, and that long‐term training to improve quality should start at the top with senior management.

Hygiene factors and motivators (Herzberg)

-The opposite of Satisfaction is No Satisfaction. -The opposite of Dissatisfaction is No Dissatisfaction. Factors for Satisfaction Achievement Recognition The work itself Responsibility Advancement Growth Factors for Dissatisfaction Company policies Supervision Relationship with supervisor and peers Work conditions Salary Status Security Step One: Eliminate Job Dissatisfaction Step Two: Create Conditions for Job Satisfaction (To create satisfaction, Herzberg says you need to address the motivating factors associated with work. He called this "job enrichment.")

Liability

-a company's legal financial debts or obligations that arise during the course of business operations -settled over time through the transfer of economic benefits including money, goods or services -recorded on the right side of the balance sheet, liabilities include loans, accounts payable, mortgages, deferred revenues and accrued expenses

Cycle count

-an inventory auditing procedure where a small subset of inventory, in a specific location, is counted on a specified day -less disruptive to daily operations, provide ongoing measure of accuracy, and can be tailored -should only be performed in facilities with a high degree of inventory accuracy (greater than 95%)

Managing team conflict (styles)

-avoidance -smoothing (playing down difference) -compromise (giving up to gain something) -collaboration (mutual problem solving) -confrontation (verbalization) -appeal to team objectives -third-party intervention

Bar charts

-chart or graph that presents categorical data with rectangular bars with heights or lengths proportional to the values that they represent. -vertically (line graph) or horizontally -shows comparisons among discrete categories -in a grouped bar chart, for each categorical group there are two or more bars -a stacked bar chart stacks bars that represent different groups on top of each other

Active listening

-coined by Gordon/Farson and Rogers Methods: -building trust and establishing rapport -demonstrating concern -paraphrasing to show understanding -nonverbal cues which show understanding -brief verbal affirmations 1. Pay Attention 2. Show That You're Listening 3. Provide Feedback 4. Defer Judgment and don't interrupt 5. Respond Appropriately Comprehending (incl. nonverbal cues) Retaining Responding Tactic barriers: fatigue, language, distractions, trigger words, vocabulary, limited attention span (psychological or physical)

Open-door policy

-communication policy in which a manager, CEO, MD, president or supervisor leaves their office door "open" in order to encourage openness and transparency with the employees of that company

Benchmarking/Best-practice benchmarking/Process benchmarking

-comparing ones business processes and performance metrics to industry bests and best practices from other companies ("targets") -can also support the selection, planning and delivery of projects -dimensions typically measured are quality, time and cost -can be one-off but usually continuous

Decision-making process

-define the problem -identify limiting factors -develop potential alternatives -analyze alternatives -select best alternative -implement decision -establish control and evaluation system -consider: feasibility, effectiveness, consequences

Organizational communication

-downward (address plans, performance feedback, delegation, and training) -upward (concern performance, complaints, or requests for help) -horizontal (focus on coordination of tasks or resources) -formal network (the marriage of people to electronic communication equipment and databases that store information) -informal channels (ex. grapevine)

Delegation

-downward transfer of authority from manager to subordinate -leads to empowerment

Drift and shift

-drift: process that induces small (imperceptible, at the time) changes in the project that happen continually over a long period of time -happens because of requirements changing continuously in small iteration, scope creep or process evolution -more acceptable to stakeholders -relatively inexpensive although the total cost can be substantial -like 'watching paint dry' -shift: abrupt, major change happens in the project -can be negative or perceived as such by stakeholders (and therefore resisted by them) -likely to be representative of the changing environmental enterprise factors -more likely to be measured in terms of resource and monetary cost -visible because of its speed and visibility

Expectancy theory

-employee will be motivated if he/she believes that (1) effort will lead to good performance appraisal, (2) good appraisal will lead to organizational rewards, (3) organizational rewards will satisfy his/her personal goals -Vroom

HR regulations

-equal employment opportunity (EEO) laws (race, ethnicity, color, gender, age, disabilities, military, religion) -affirmative action -EEOC (Equal Employment Opportunity Commission): Civil Rights Act 1964, Civil Rights Act 1991, Equal Pay Act 1963, Pregnancy Discrimination Act 1978, ADA, Vocational Rehabilitation Act -sexual harassment

Control chart/Shewhart chart/Process-behavior chart

-graph used to study how a process changes over time -data plotted in time order -always has a central line for the average, an upper line for the upper control limit and a lower line for the lower control limit

Teamwork defined

-groups: 2+ people interacting with no unified purpose -mobs: unified purpose, actually purposeful in their actions -teams: share common goal *a work group's performance is a function of what its members do as individuals, while a team's performance is based on collective results—what two or more workers accomplish jointly

Gantt chart

-horizontal bar chart developed as a production control tool -used in project management -provides a graphical illustration of a schedule that helps to plan, coordinate, and track specific tasks in a project

Behavioral management theory (Qualitative school)

-human relations movement -Mayo and Roethlisberger: human relations and social needs of workers are crucial aspects of business management -Maslow: physiological needs, safety needs, belonging and love needs, esteem needs, self-actualization needs -McGregor: Theory X and Theory Y

Informal organization

-informal groups -grapevine

Internal control/operational control (systems)

-internal control refers to the actions taken to achieve a specific objective -internal control procedures reduce process variation, leading to more predictable outcomes -internal control is a key element of the Foreign Corrupt Practices Act (FCPA) of 1977 and the Sarbanes-Oxley Act of 2002, which required improvements in internal control in United States public corporations -there are preventive, detective, and corrective controls -5 components: the control environment; the entity's risk assessment process; the information system; the control activities; and. the monitoring of controls.

Mintzberg's ten roles of a manager

-interpersonal (figurehead, leader, liaison) -informational (monitor, disseminator, spokesperson) -decisional (entrepreneur, disturbance handler, resource allocator, negotiator)

AACSB (business schools) manager skills

-leadership -self-objectivity -analytic thinking -behavioral flexibility -oral communication -written communication -personal impact -resistance to stress -tolerance for uncertainty

Reinforcement theory

-looks at relationship b/w behavior and consequences, focusing on modifying employee's behavior through (1) positive reinforcement (rewards), (2) avoidance (showing employee consequences of improper behavior), (3) extinction (ignoring the behavior), OR (4) punishment -Thorndike

Costs/Project Cost Management (PCM)

-method that uses technology to measure cost and productivity through the full life cycle of enterprise level projects -encompasses several specific functions of project management including estimating, job controls, field data collection, scheduling, accounting and design. PCM main goal is to complete a project within an approved budget -key technique is Earned Value Management (EVM): a way to measure project progress objectively 4 Processes: 1. Planning Cost Management 2. Estimating Costs 3. Determining Budget 4. Controlling Cost

Tactical goal

-middle managers -goals specific to work units

Internal environment

-mission statement -company policies -formal structure of organization -resources -management styles -culture of organization: -values -heroes (exemplary people) -rites and rituals -social network

Communication methods

-nonverbal communication (sometimes causing a mixed message) -oral/verbal -active listening -constructive feedback -written -POWER (plan, organize, write, edit, revise)

Span of control/span of management

-number of workers who report to one manager -wide=large number of subordinates -narrow=small number of subordinates

CIP (continuous/continual improvement)

-ongoing improvement of products, services or processes through incremental and breakthrough improvements -these efforts can seek "incremental" improvement over time or "breakthrough" improvement all at once. -common method is plan-do-check-act (PDCA) cycle, also known as Deming Cycle or Shewhart Cycle; other methods include Six Sigma, Lean, Total Quality Management

Self-directed work teams

-operate without managers and are responsible for complete work processes or segments that deliver products or services -designed to give employees feeling of "ownership"

Factors that affect organizational design

-organizational size -organization life cycle (birth, youth, midlife, maturity) -strategy -environment (stable or dynamic) -production type (small-batch, mass, or continuous-process production)

Maslow's hierarchy of needs

-physiological (water, food, shelter, sleep, clothing, sex) -safety (personal, financial, health) -social (friendships, intimacy, family) -esteem (status, recognition; lower and higher versions based on external and internal approval) -self-actualization --> self-transcendence

Functions of managers

-planning -organizing -staffing -leading -controlling

International environment

-political -legal -economic (inflation and exchange rates) -sociocultural -technological

Performance measures

-process of collecting, analyzing and/or reporting information regarding the performance of an individual, group, organization, system or component -can involve studying processes/strategies within organizations, or studying engineering processes/parameters/phenomena, to see whether output are in line with what was intended or should have been achieved -ex. balanced scorecard

Contracts/contract management

-process of systematically and efficiently managing contract creation, execution, and analysis for the purpose of maximizing financial and operational performance and minimizing risk -includes negotiating the terms and conditions in contracts and ensuring compliance with the terms and conditions, as well as documenting and agreeing on any changes or amendments -there are sales contracts, purchasing contracts, and partnership contracts -change may be based on a mutual decision, unilateral decision, or bilateral decision

Goal-setting theory

-proposed that intentions to work toward a goal are a major source of motivation (although they should still get feedback) -Locke

Groupthink

-psychological phenomenon that occurs within a group of people in which the desire for harmony or conformity in the group results in an irrational or dysfunctional decision-making outcome -try to minimize conflict, without critical evaluation of alternative viewpoints and suppressing dissent and isolating themselves - "ingroup" produces "illusion of invulnerability" and can produce dehumanizing actions against the "outgroup"

Personal decision-making styles

-rational/logical -intuitive (gut) -predisposed (once an acceptable decision is found, alternatives not evaluated)

Organizational process

-review plans and objectives -determine work activities necessary -classify and group the necessary work activities into units -assign activities and delegate authority -design hierarchy of relationships

Conditions that influence decision-making

-risk -uncertainty

Advantages of planning

-sense of direction -focus on results -basis for teamwork -helps anticipate problems/change -guidelines for decision making -prerequisite to employing other management functions

Organizational structure

-set of formal tasks -formal reporting relationships -design of systems to ensure effective coordination

Shift response and support response

-shift response: general tendency of a speaker in a conversation to affix attention to their position -support response: an attention giving method and a cooperative effort to focus the conversational attention on the other person

SOW (statement of work)

-simple narrative statement of all the work needing to be completed on a project -discusses the services required in order to complete the project, the deliverables throughout the course of the project, and defines the tasks that need to be accomplished -its outline includes: 1. Project Scope: Information on the project in terms of what it is supposed to be, who it is for, etc. 2. Title: The name the project is to be referred as. 3. Introduction: Brief Description of the services required to complete the project. Estimate Value: The estimated total cost of the project. 4. Objectives: What the project aims to accomplish when it is complete. 5. Background: Lets everyone know what happened to cause need for the project. Requirements: What will be needed in order to complete the project: 6. Tasks and Deliverables (Work Breakdown Structure): A small chart of everything that needs to be done and the deliverables expected. 7. Project Specifications: Specifics regarding how the project is to be completed. 8. Technical Organization: Information on the technical requirements and organization of where the project will be completed. 9. Method and Source of Acceptance: How the project deliverables and deadlines will be approved. 10. Reporting Requirements: Requirements of the project status in reporting to the client. 11. Project Management Control Policy: Discusses how the project will be handled in terms of meetings, demos, and prototypes. 12. Change Management Control Policy: Discusses how changes will be handled. 13. Copyright Information: Information regarding who the copyright of the project will belong to when it is complete.

Criteria for goals

-specific and measurable -cover key result areas -challenging but not too difficult -specify time period -linked to rewards

Types of organizational change

-strategic -structural -process-oriented -people-centered

Balanced scorecard

-strategy performance management tool -a semi-standard structured report, that can be used by managers to keep track of the execution of activities by the staff within their control and to monitor the consequences arising from these actions Known for: -focus on the strategic agenda of the organization concerned -the selection of a small number of data items to monitor -a mix of financial and non-financial data items

Proxemics

-study of human use of space and the effects that population density has on behavior, communication, and social interaction -Hall

Implementation of TQM

-surveys, guarantees "after the sale" and warrantees -must start at the top and be supported at all levels -also necessary: change in corporate culture about importance of quality, forging internal/external team partnerships, audits, removal of obstacles -usually takes 2-10 years

Lean

-systematic method for waste minimization ("Muda") within a manufacturing system without sacrificing productivity -takes into account waste created through overburden ("Muri") and waste created through unevenness in work loads ("Mura")

Communication/communications management

-systematic planning, implementing, monitoring, and revision of all the channels of communication within an organization, and between organizations; it also includes the organization and dissemination of new communication directives connected with an organization, network, or communications technology -includes developing corporate communication strategies, designing internal and external communications directives, and managing the flow of information -weekly reporting method is one way of doing it (everyone emails to their managers and then summaries are sent up the ladder)

WBS (work breakdown structure)

-task by task breakdown with a time estimate to completion for the entire project -included in the Statement of Work, and serves as the basis for most of the project Gantt Chart - both WBS and SOW are integral -project manager and subject matter experts determine the main deliverables for the project and break them down into successively smaller chunks of work, based on two weeks rule (tasks take about two weeks to complete) or 8/80 rule (no chunk would take less than 8 hours or more than 80 hours) -WBS diagram used to express the project scope in graphic terms, with upper components (deliverables) and lower elements (activities that create the deliverables) -Gantt charts often used Common reasons for using it: -Assists with accurate project organization -Helps with assigning responsibilities -Shows the control points and project milestones -Allows for more accurate estimation of cost, risk and time -Helps explain the project scope to stakeholders

Skills of managers

-technical -human -conceptual

Pyramid --> circle

-the customer is at the core of the organization, surrounded by the customer facing employees (sales execs, support engineers, product development folks, etc). -each outward circle represents a layer of people who shall support these customer facing employees in serving the customers needs in the best way possible -the core employees are trained in identifying trends and insights and create the strategy with the guidance from the other execs in the organizations

Cognitive conflict resolution

-the way disputants understand and view the conflict, with beliefs, perspectives, understandings and attitudes

Strategic goals

-top level -longer time periods -developing mission for the organizational units, objective, and major policy areas

Management structures

-top level (CEO, COO, president, vice president: responsible for the performance of an organization) -middle level (ex. clinic directors, deans, division managers: develop and implement action plans consistent with company objectives) -low level (team leader or supervisor: ensure that work teams meet performance objectives that are consistent with the plans of higher management)

Accrual basis

-under the accrual basis of accounting, expenses are matched with the related revenues and/or are reported when the expense occurs, not when the cash is paid -result is an income statement that better measures the profitability of a company during a specific time period

Hiring

-validity (proof that the relationship between the selection device and some relevant job criterion exists) -reliability (indicator that the device measures the same thing consistency) -application forms -tests (integrity tests, personality tests, knowledge tests, performance simulation tests) -assessments -work sampling -reference checking -health exams

Pipeline management

-visual representation of sales prospects and where they are in the purchasing process -also provides an overview of a sales rep's account forecast and how close he is to making quota, as well as how close a sales team as a whole is to reaching quota -enables sales reps and sales managers to forecast the number and dollar amounts of deals that will close in a given period of time

Shipments

-warehouse manager: does order fulfillment, reserves inventory, manages pick waves -warehouse operator: picks loads -shipping agent: processes shipments, communicates with partners, does order fulfillment, captures cost, does financial control Steps: 1. Enter order 2. Create movement transaction 3. Create movement request 4. Reserve inventory 5. Print pick slips 6. Confirm pick 7. Transfer subinventory 8. Confirm ship 9. Send advice

Equity theory

-workers compare the reward potential to the effort they must expend -equity exists when workers perceive that rewards equal efforts -Abrams

Deming's 14 points (TQM)

1. Create constancy of purpose toward improvement of product and service, with the aim to become competitive and to stay in business, and to provide jobs. 2. Adopt the new philosophy. We are in a new economic age. Western management must awaken to the challenge, must learn their responsibilities, and take on leadership for change. 3. Cease dependence on inspection to achieve quality. Eliminate the need for inspection on a mass basis by building quality into the product in the first place. 4. End the practice of awarding business on the basis of price tag. Instead, minimize total cost. Move toward a single supplier for any one item, on a long-term relationship of loyalty and trust. 5. Improve constantly and forever the system of production and service, to improve quality and productivity, and thus constantly decrease costs. 6. Institute training on the job. 7. Institute leadership (see Point 12 and Ch. 8). The aim of supervision should be to help people and machines and gadgets to do a better job. Supervision of management is in need of overhaul, as well as supervision of production workers. 8. Drive out fear, so that everyone may work effectively for the company (see Ch. 3). 9. Break down barriers between departments. People in research, design, sales, and production must work as a team, to foresee problems of production and in use that may be encountered with the product or service. 10. Eliminate slogans, exhortations, and targets for the work force asking for zero defects and new levels of productivity. Such exhortations only create adversarial relationships, as the bulk of the causes of low quality and low productivity belong to the system and thus lie beyond the power of the work force. Eliminate work standards (quotas) on the factory floor. Substitute leadership. Eliminate management by objective. Eliminate management by numbers, numerical goals. Substitute leadership. 11. Remove barriers that rob the hourly worker of his right to pride of workmanship. The responsibility of supervisors must be changed from sheer numbers to quality. 12. Remove barriers that rob people in management and in engineering of their right to pride of workmanship. This means, inter alia, abolishment of the annual or merit rating and of management by objective (see Ch. 3). 13. Institute a vigorous program of education and self-improvement. 14. Put everybody in the company to work to accomplish the transformation. The transformation is everybody's job.

Negotiating strategies

1. Cultivate a relationship. 2. Think positive. 3. Prepare, practice, research. 4. Think about the best & worst outcome before the negotiations begin. 5. Be articulate & build value. 6. Give & Take.

Stages of team development

1. Forming (familiarize) 2. Storming (competition and conflict within the team) 3. Norming (team relations characterized by cohesion) 4. Performing (most productive--not all teams get to this stage) 5. Adjourning (team breaks up) -Tuckman

Organizational design approaches

1. Funcional structure: specialized work units 2. Divisional structure: departments 3. Matrix structure: combines functional specialization with the focus of divisional structure 4. Team structure: cross-functional teams composed of members from different departments who work together 5. Network structure: relies on other organizations to perform functions on a contractural basis

Expression with language barriers

1. NARROW YOUR MARKET 2. SHOW RESPECT BY KNOWING WHICH LANGUAGE IS SPOKEN 3. CONDUCT SURVEYS 4. TRANSLATE DOCUMENTS 5. HIRE AN INTERPRETER 6. USE TECHNOLOGY 7. AVOID IDIOMS, JARGON, AND SLANG WORDS 8. USE VISUAL METHODS OF COMMUNICATION 9. LEARN THE BASICS 10. SEEK CLARIFICATION

(PDCA) cycle

1. Plan. Recognize an opportunity and plan a change. 2. Do. Test the change. Carry out a small-scale study. 3. Check. Review the test, analyze the results and identify what you've learned. 4. Act. Take action based on what you learned in the study step: If the change did not work, go through the cycle again with a different plan. If you were successful, incorporate what you learned from the test into wider changes. Use what you learned to plan new improvements, beginning the cycle again.

Fair Labor Standards Act (FSLA)

1938 act which provided for a minimum wage and restricted shipments of goods produced with child labor

Who should be involved in strategy implementation?

All responsible actors should be involved in strategy implementation. This includes the CEO, the Board of Directors, shareholders if the company is public and other members of the management team.

Organizational design

Organizational design is the creation or change of an organization's structure. The organizational design of a company reflects its efforts to respond to changes, integrate new elements, ensure collaboration, and allow flexibility.

Which is true for a business that is facing a turbulent, unpredictable business environment? A. It should leave its goals vague to be more flexible. B. It should avoid milestones so that workflow is allowed to remain fluid. C. It should write detailed plans that attempt to cover every possibility. D. It must innovate strategic controls appropriate for its environment.

A business facing a turbulent business environment must innovate strategic controls that are appropriate for its environment. Detailed plans in such cases will probably not be useful, but it is still important to have a clear understanding of what the company is trying to achieve and clear milestones with which to assess progress.

When should a company consider vertical integration? A. When lowered transactional costs and greater coordination are important B. Whenever different, specialized companies will be combined C. When the company is unable to expand profits within its segment of the value chain D. When the company lacks liquidity

A company should consider vertical integration when lowered transactional costs and greater coordination are important. Vertical integration lets the company take over a larger portion of the value chain; backward and forward integration are both examples of vertical integration.

Which of the following failures is common in companies that are barely keeping up with their day-to-day functions? A. The failure to reevaluate strategic aims. B. The failure to question basic assumptions about the business environment. C. The failure to analyze its own operations objectively. D. All of the above

A company that is barely keeping up with routine tasks commonly fails at all of the above. It is important to build time into your schedule to stop moving and look at the big picture to ensure that the company is moving in the right overall direction.

Which of the following best measures a company's ability to meet short-term obligations? A. Liquidity B. Profitability C. Productivity D. Leverage

A company's ability to meet short-term obligations is best measured by its liquidity. Liquidity measures a company's cash on hand and assets that can be quickly converted to cash at or near full value. Profitable companies with many assets that lack liquidity can usually finance short-term obligations with other loans.

Decision trees

A decision tree is a quantitative tool for decision making. It shows a complete picture of a potential decision and allows a manager to graph alternative decision paths. Decision trees are a useful way to analyze hiring, marketing, investments, equipment purchases, pricing, and similar decisions that involve a progression of smaller decisions. Generally, decision trees are used to evaluate decisions under conditions of risk.

Goals

A goal is a desired future state that the organization attempts to realize. Goals are important because an organization exists for a purpose, and goals define and state that purpose. Goals specify future ends; plans specify today's means. -should cover key areas -should be challenging but not too difficult -should specify the time period over which they'll be achieved -should be linked to rewards

Joint venture vs. strategic alliance

A joint venture involves the creation of a third-party entity, while a strategic alliance does not. In a joint venture, the new company is owned by the companies and investors involved.

Paternalistic leadership

A paternalistic leader, as the name suggests, adopts a father-like approach. This style is a hybrid of the democratic and autocratic styles. Paternalistic leaders may allow employee input, but they ultimately make the final decision based on what they think is best. The solicitation of feedback can improve morale, but this may be only temporary if employees realize that none of their suggestions are being implemented.

Performance appraisal

A performance appraisal is a formal, structured system designed to measure the actual job performance of an employee against designated performance standards. Although performance appraisals systems vary by organizations, all employee evaluations should have the following three components: 1. Specific, job‐related criteria against which performance can be compared 2. A rating scale that lets employees know how well they're meeting the criteria 3. Objective methods, forms, and procedures to determine the rating

Requests

A request for information (RFI) is a standard business process whose purpose is to collect written information about the capabilities of various suppliers. Normally it follows a format that can be used for comparative purposes. A request for proposal (RFP) is a document that solicits proposal, often made through a bidding process, by an agency or company interested in procurement of a commodity, service, or valuable asset, to potential suppliers to submit business proposals. It is submitted early in the procurement cycle, either at the preliminary study, or procurement stage. A request for quotation (RFQ) is a standard business process whose purpose is to invite suppliers into a bidding process to bid on specific products or services. RFQ generally means the same thing as IFB (Invitation For Bid).

Tactical plans

A tactical plan is concerned with what the lower level units within each division must do, how they must do it, and who is in charge at each level. Tactics are the means needed to activate a strategy and make it work. Tactical plans are concerned with shorter time frames and narrower scopes than are strategic plans. These plans usually span one year or less because they are considered short‐term goals. Long‐term goals, on the other hand, can take several years or more to accomplish. Normally, it is the middle manager's responsibility to take the broad strategic plan and identify specific tactical actions. A strategic plan is an outline of steps designed with the goals of the entire organization as a whole in mind, rather than with the goals of specific divisions or departments. Strategic planning begins with an organization's mission.

Hiring strategies

A well-defined strategy. Pipeline approach (pipeline of candidates). Competitive. Employment branding (the process of building your external image as an excellent place to work). Global. Target employed "non-lookers." Speed. Sourcing is critical. Data-based decisions. Build a recruiting culture. A candidate-centric approach. Prioritize jobs and targets. Managers are the delivery system. Diversity. Selling applicants. Technology. Integration. Talent shortages. Remote work options.

ABC analysis

ABC analysis is an inventory categorization method which consists in dividing items into three categories, A, B and C: A being the most valuable items, C being the least valuable ones. This method aims to draw managers' attention on the critical few (A-items) and not on the trivial many (C-items).

When is an emphasis on corporate culture and intangible rewards more useful than strict rules?

An emphasis on corporate culture and intangible rewards is useful when work is creative and self-directed. In these situations, it is not clear how rules and strict evaluations would be designed in the first place, and poorly developed rules would actually impede productivity.

Which of the following is not a part of effective short-term goal setting? A. Clear standards for measuring success B. An emphasis on doing your best C. Specific timelines for project completion D. Setting goals that are achievable without being trivial

An emphasis on doing your best is not a part of effective short-term goal setting. Ambiguous goals allow you to alter expectations as the work progresses, which defeats the purpose of goal setting in the first place.

Operational plans

An operational plan is one that a manager uses to accomplish his or her job responsibilities. Supervisors, team leaders, and facilitators develop operational plans to support tactical plans (see the next section). Operational plans can be a single‐use plan or an ongoing plan. -single-use -continuing/ongoing -policy -procedure -rule

Autocratic leadership

Autocratic leaders control the decision-making entirely and express no interest in the suggestions of employees. This leadership style is useful in situations that demand speedy decision-making and when information is confidential, but it may demoralize employees and result in less creative decision-making.

Barnard (Classical school)

Barnard felt that it was particularly important for managers to develop a sense of common purpose where a willingness to cooperate is strongly encouraged. He is credited with developing the acceptance theory of management, which emphasizes the willingness of employees to accept that managers have legitimate authority to act. Barnard felt that four factors affected the willingness of employees to accept authority: The employees must understand the communication. The employees accept the communication as being consistent with the organization's purposes. The employees feel that their actions will be consistent with the needs and desires of the other employees. The employees feel that they are mentally and physically able to carry out the order. Barnard's sympathy for and understanding of employee needs positioned him as a bridge to the behavioral school of management, the next school of thought to emerge.

Alderfer's ERG theory

Clayton Alderfer's ERG (Existence, Relatedness, Growth) theory is built upon Maslow's hierarchy of needs theory. To begin his theory, Alderfer collapses Maslow's five levels of needs into three categories. Existence needs are desires for physiological and material well‐being. (In terms of Maslow's model, existence needs include physiological and safety needs) Relatedness needs are desires for satisfying interpersonal relationships. (In terms of Maslow's model, relatedness correspondence to social needs) Growth needs are desires for continued psychological growth and development. (In terms of Maslow's model, growth needs include esteem and self‐realization needs) This approach proposes that unsatisfied needs motivate behavior, and that as lower level needs are satisfied, they become less important. Higher level needs, though, become more important as they are satisfied, and if these needs are not met, a person may move down the hierarchy, which Alderfer calls the frustration‐regression principle. What he means by this term is that an already satisfied lower level need can become reactivated and influence behavior when a higher level need cannot be satisfied. As a result, managers should provide opportunities for workers to capitalize on the importance of higher level needs.

Parenting

Parenting is when a head office closely advises subsidiaries. The term isn't meant to be derisive; it has more to do with mentoring than with paternalism.

What should be the relationship between a corporate strategy and corporate structure?

Corporate structure should be designed to implement corporate strategy. Of course, there is a cost associated with reorganization, which is another reason why it is vital to develop an effective overall corporate strategy from the beginning.

An active listener

DOES NOT: complete others' sentences DOES: plan a response, provide feedback, maintain awareness of biases

McClelland's acquired needs theory

David McClelland's acquired needs theory recognizes that everyone prioritizes needs differently. He also believes that individuals are not born with these needs, but that they are actually learned through life experiences. McClelland identifies three specific needs: Need for achievement is the drive to excel. Need for power is the desire to cause others to behave in a way that they would not have behaved otherwise. Need for affiliation is the desire for friendly, close interpersonal relationships and conflict avoidance. McClelland associates each need with a distinct set of work preferences, and managers can help tailor the environment to meet these needs.

CIP: who?

Deming

Democratic leadership

Democratic leaders seek the input of employees in decision-making. This style motivates employees, but it may be time-consuming because of the ongoing consultations.

Negotiation

Direct bargaining between disputing parties with the parties attempting to resolve the dispute without the involvement of a neutral third party. Many real estate brokers practice this method of DRS without even realizing it. One example is where a disgruntled buyer on a walk-through inspection finds the seller broke the mailbox when moving out of the home and the real estate broker offers to replace the mailbox to resolve the problem.

External environment

Directly interactive: This environment has an immediate and firsthand impact upon the organization. A new competitor entering the market is an example. Indirectly interactive: This environment has a secondary and more distant effect upon the organization. New legislation taking effect may have a great impact. For example, complying with the Americans with Disabilities Act requires employers to update their facilities to accommodate those with disabilities. DIMENSIONS: -sociocultural: demographics, values -political -legal -technological -economic -global

Listening

Do: -Take an honest look at both your good and bad habits -Clear out all distractions that might draw your attention away from the person in front of you -Ask clarifying questions and repeat back what you heard Don't: -Assume you know all of the answers — allow for the possibility that others have valuable information to share -Overlook nonverbal cues — they often reveal what a person is really thinking -React emotionally to what is being said — acknowledge the information even if you don't agree

Power vs. authority

Effective leaders develop and use power, or the ability to influence others. The traditional manager's power comes from his or her position within the organization. Legitimate, reward, and coercive are all forms of power used by managers to change employee behavior and are defined as follows: Legitimate power stems from a formal management position in an organization and the authority granted to it. Subordinates accept this as a legitimate source of power and comply with it. Reward power stems from the authority to reward others. Managers can give formal rewards, such as pay increases or promotions, and may also use praise, attention, and recognition to influence behavior. Coercive power is the opposite of reward power and stems from the authority to punish or to recommend punishment. Managers have coercive power when they have the right to fire or demote employees, criticize them, withhold pay increases, give reprimands, make negative entries in employee files, and so on. Expert power results from a leader's special knowledge or skills regarding the tasks performed by followers. When a leader is a true expert, subordinates tend to go along quickly with his or her recommendations. Referent power results from leadership characteristics that command identification, respect, and admiration from subordinates who then desire to emulate the leader. When workers admire a supervisor because of the way he or she deals with them, the influence is based on referent power. Referent power depends on a leader's personal characteristics rather than on his or her formal title or position, and is most visible in the area of charismatic leadership. The most common follower response to expert power and referent power is commitment. Commitment means that workers share the leader's point of view and enthusiastically carry out instructions. Needless to say, commitment is preferred to compliance or resistance. Commitment helps followers overcome fear of change, and it is especially important in those instances.

Entropy

Entropy is the tendency of systems to deteriorate or break down over time.

Organizational control process

Establish standards to measure performance. Within an organization's overall strategic plan, managers define goals for organizational departments in specific, operational terms that include standards of performance to compare with organizational activities. Measure actual performance. Most organizations prepare formal reports of performance measurements that managers review regularly. These measurements should be related to the standards set in the first step of the control process. For example, if sales growth is a target, the organization should have a means of gathering and reporting sales data. Compare performance with the standards. This step compares actual activities to performance standards. When managers read computer reports or walk through their plants, they identify whether actual performance meets, exceeds, or falls short of standards. Typically, performance reports simplify such comparison by placing the performance standards for the reporting period alongside the actual performance for the same period and by computing the variance—that is, the difference between each actual amount and the associated standard. Take corrective actions. When performance deviates from standards, managers must determine what changes, if any, are necessary and how to apply them. In the productivity and quality‐centered environment, workers and managers are often empowered to evaluate their own work. After the evaluator determines the cause or causes of deviation, he or she can take the fourth step—corrective action. The most effective course may be prescribed by policies or may be best left up to employees' judgment and initiative.

Rehabilitation Act of 1973

Extended protection to those with physical or mental handicaps (wheelchair=B and C)

Fayol (Classical school)

Fayol developed 14 principles of management based on his management experiences. These principles provide modern‐day managers with general guidelines on how a supervisor should organize her department and manage her staff. Although later research has created controversy over many of the following principles, they are still widely used in management theories. Division of work. Authority and responsibility. Discipline. Unity of command/unity of direction. Subordination of individual interest to general interest. Remuneration of personnel. Centralization. Scalar chain: A chain of authority exists from the highest organizational authority to the lowest ranks. Order. Equity. Stability of tenure of personnel. Initiative. Esprit de corps.

Types of organizational controls

Feedforward controls, sometimes called preliminary or preventive controls, attempt to identify and prevent deviations in the standards before they occur. Feedforward controls focus on human, material, and financial resources within the organization. These controls are evident in the selection and hiring of new employees. For example, organizations attempt to improve the likelihood that employees will perform up to standards by identifying the necessary job skills and by using tests and other screening devices to hire people with those skills. Concurrent controls monitor ongoing employee activity to ensure consistency with quality standards. These controls rely on performance standards, rules, and regulations for guiding employee tasks and behaviors. Their purpose is to ensure that work activities produce the desired results. As an example, many manufacturing operations include devices that measure whether the items being produced meet quality standards. Employees monitor the measurements; if they see that standards are not being met in some area, they make a correction themselves or let a manager know that a problem is occurring. Feedback controls involve reviewing information to determine whether performance meets established standards. For example, suppose that an organization establishes a goal of increasing its profit by 12 percent next year. To ensure that this goal is reached, the organization must monitor its profit on a monthly basis. After three months, if profit has increased by 3 percent, management might assume that plans are going according to schedule.

Fiedler's contingency theory

Fred E. Fiedler's contingency theory centers on the belief that there is no best way for managers to lead. Different situations create different leadership style requirements for managers. The style that works in one environment may not work in another. Fiedler looked at three elements that dictate a leader's situational control. These elements are: Task structure. Is the job highly structured, fairly unstructured, or somewhere in between? The spelling out in detail (favorable) of what is required of subordinates affects task structure. Leader/member relations. This element applies to the amount of loyalty, dependability, and support that a leader receives from his or her employees. In a favorable relationship, a manager has a highly formed task structure and is able to reward and/or punish employees without any problems. In an unfavorable relationship, the task structure is usually poorly formed, and the leader possesses limited authority. Positioning power. Positioning power measures the amount of power or authority a manager perceives the organization has given him or her for the purpose of directing, rewarding, and punishing subordinates. Positioning powers of managers depends on the taking away (favorable) or increasing (unfavorable) of the decision‐making power of employees.

Taylor (Classical school)

Frederick Taylor is often called the "father of scientific management." Taylor believed that organizations should study tasks and develop precise procedures. As an example, in 1898, Taylor calculated how much iron from rail cars Bethlehem Steel plant workers could be unloading if they were using the correct movements, tools, and steps. The result was an amazing 47.5 tons per day instead of the mere 12.5 tons each worker had been averaging. In addition, by redesigning the shovels the workers used, Taylor was able to increase the length of work time and therefore decrease the number of people shoveling from 500 to 140. Lastly, he developed an incentive system that paid workers more money for meeting the new standard. Productivity at Bethlehem Steel shot up overnight. As a result, many theorists followed Taylor's philosophy when developing their own principles of management.

ISO 9000 Certification

Globally, customers expect quality whether they are buying a consumer product or receiving a service. As a result, many countries have adopted the quality standards set by the International Standards Organization (ISO) in Geneva, Switzerland. Businesses that want to compete as world‐class companies are increasingly expected to have ISO 9000 Certification at various levels. To gain certification in this family of quality standards, businesses must undergo a rigorous assessment by outside auditors to determine whether they meet ISO requirements. Increasingly, the ISO stamp of approval is viewed as a necessity in international business; the ISO certification provides customers with an assurance that a set of solid quality standards and processes are in place. The commitment to total quality operations is now a way of life in world‐class firms. In the United States, the Malcolm Baldridge National Quality Awards were established to benchmark excellence in quality achievements. The following list of award criteria indicates the full extent of the day‐to‐day commitment that is essential to gaining competitive advantage through a commitment to total quality: Top executives incorporate quality values into day‐to‐day management. The organization works with suppliers to improve the quality of their goods and/or services. The organization trains workers in quality techniques and implements systems that ensure high‐quality products. The organization's products are as good as or better than those of its competitors. The organization meets customers' needs and wants and gets customer satisfaction ratings equal to or better than those of competitors. The organization's quality system yields concrete results such as increased market share and lower product cycle times.

Contingency plans

Intelligent and successful management depends upon a constant pursuit of adaptation, flexibility, and mastery of changing conditions. Strong management requires a "keeping all options open" approach at all times — that's where contingency planning comes in. Contingency planning involves identifying alternative courses of action that can be implemented if and when the original plan proves inadequate because of changing circumstances.

Evaluations/ "soft" areas

Hard skills include the book skills you learn in school. They are the components that remain the same in any environment. Hard skills people commonly list on resumes include programming language familiarity, degree levels, certifications, and familiarity with certain software, platforms, or computers. For a writer, Microsoft Word is a hard skill, whereas communicating with clients and understanding parameters is a soft skill. Soft skills include a professional's ability to adapt to an environment, their willingness to learn, their creativity, and their problem-solving skills. These are attributes of a person's personality that aren't taught, but are learned in each job environment. Both types of skills can be valuable in the workplace, and those who are drawn more toward one skill type than another may use aptitude to help them find the right job. Depending on the career, one type of skillset may be more important than another is. For instance, a salesperson, marketer, or customer support specialist usually needs soft skills more than hard skills. Programmers, physicists, and mechanics, on the other hand, may not need advanced soft skills to do their jobs well.

Management by walking around: which is NOT part of it? A. Wander through the company without a specific plan. B. Have specific questions that need to be answered by specific people. C. Let other people guide conversations. D. Be open to new ideas and don't be argumentative.

Having specific questions that need to be answered by specific people is not a part of "management by walking around." The goal of MBWA is to create an environment of trust that empowers employees to do their best work. Asking questions to learn about your employees' work and to help problem-solve is encouraged, but the goal is to keep an open mind and not be interrogative.

Gantt (Classical school)

Henry Gantt, an associate of Taylor's, developed the Gantt chart, a bar graph that measures planned and completed work along each stage of production. Based on time instead of quantity, volume, or weight, this visual display chart has been a widely used planning and control tool since its development in 1910.

Biggest job performance indicator

IQ

Which of the following is a characteristic of a mature market? A. Growth is low, and competition is intense. B. Growth is high, and it is an easy market to enter. C. Growth is low, but there is plenty of room for future expansion. D. Profit depends more on product design than on efficiency.

In a mature market, growth is low and competition is intense. A company must focus on processes as much as products and become efficient at cutting costs.

Mediation

In mediation, a neutral third party assists the disputants in negotiating a mutually acceptable settlement. Mediators do not make decisions but instead help the parties make their own agreement by clarifying issues, utilizing persuasion, and employing other conflict resolution strategies and techniques. Although there is no guarantee that every dispute will be resolved, surveys show that settlements are reached over 80% of the time.

Laissez faire leadership

Laissez faire means allowing persons to do as they please. Managers that adopt this style give their employees significant freedom and autonomy. A leader with this style provides very little guidance to his subordinates. Laissez faire leadership is effective when employees are highly skilled or are experts in their field and require little supervision. However, researchers Lewin, Lippit and White found that this style ultimately resulted in lowered productivity, less cohesion and reduced job satisfaction.

Leadership

Leading is establishing direction and influencing others to follow that direction. But this definition isn't as simple as it sounds because leadership has many variations and different areas of emphasis. Leadership traits often include drive, motivation, honesty and integrity, self-confidence, cognitive ability, business knowledge. Leadership skills (competencies) that depend on # of people following the leader, the extent of the leader's leadership skills, the leader's basic nature and values, the group or organization's background, the particular culture of whoever is being led. Drucker believes consistency is the key to good leadership. Leadership styles include autocratic, participative, and laissez-faire. How managers approach motivation, decision-making, and task and employee orientation affects their leadership style (impoverished, country club, authoritarian, middle-of-the-road, team).

Management information systems (MIS) (Quantitative School)

Management information systems (MIS) is the most recent subfield of the quantitative school. A management information system organizes past, present, and projected data from both internal and external sources and processes it into usable information, which it then makes available to managers at all organizational levels. The information systems are also able to organize data into usable and accessible formats. As a result, managers can identify alternatives quickly, evaluate alternatives by using a spreadsheet program, pose a series of "what‐if" questions, and finally, select the best alternatives based on the answers to these questions.

Follett (Classical school)

Mary Parker Follett stressed the importance of an organization establishing common goals for its employees. However, she also began to think somewhat differently than the other theorists of her day, discarding command‐style hierarchical organizations where employees were treated like robots. She began to talk about such things as ethics, power, and leadership. She encouraged managers to allow employees to participate in decision making. She stressed the importance of people rather than techniques — a concept very much before her time. As a result, she was a pioneer and often not taken seriously by management scholars of her time. But times change, and innovative ideas from the past suddenly take on new meanings. Much of what managers do today is based on the fundamentals that Follett established more than 80 years ago.

Weber (Classical school)

Max Weber disliked that many European organizations were managed on a "personal" family‐like basis and that employees were loyal to individual supervisors rather than to the organization. He believed that organizations should be managed impersonally and that a formal organizational structure, where specific rules were followed, was important. In other words, he didn't think that authority should be based on a person's personality. He thought authority should be something that was part of a person's job and passed from individual to individual as one person left and another took over. This nonpersonal, objective form of organization was called a bureaucracy.

Effects of IT systems over the last decade

New IT systems have increased social capital. Since co-workers can interact with more people more often, building a social network is more important to working effectively than it used to be, but that doesn't mean that all employees are able to do so effectively.

Normal profits

Normal profits give the same return on investment as a different investment that is equally risky. Portfolio management is primarily a process of balancing risk and expected returns, so having high returns relative to risk makes a company more attractive to investors.

Payback analysis

Payback analysis is a quantitative tool for decision making. It comes in handy if a manager needs to decide whether to purchase a piece of equipment. Say, for example, that a manager is purchasing cars for a rental car company. Although a less‐expensive car may take less time to pay off, some clients may want more luxurious models. To decide which cars to purchase, a manager should consider some factors, such as the expected useful life of the car, its warranty and repair record, its cost of insurance, and, of course, the rental demand for the car. Based on the information gathered, a manager can then rank alternatives based on the cost of each car. A higher‐priced car may be more appropriate because of its longer life and customer rental demand. The strategy, of course, is for the manager to choose the alternative that has the quickest payback of the initial cost.

Identifying barriers to planning

Planning=preparing for tomorrow, today. -inadequate planning -lack of commitment to planning process -inferior information -focus on present at expense of future -over-reliance on organization's planning department -concentrating on controllable variable

Progressive discipline

Progressive discipline is an employee disciplinary system that provides a graduated range of responses to employee performance or conduct problems. Disciplinary measures range from mild to severe, depending on the nature and frequency of the problem.

Purchasing

Purchasing process: Market survey Requisitioning Approving Studying Market Making Purchase Decision Placing Orders Receipting Goods and Services Received Accounting Goods and Services Receiving Invoices and Making Payment Credit note in case of material defect Purchasing management process: Purchasing Planning Purchasing Operation (PR-PO Approval) Purchasing Tracking and Delivery Purchasing Reporting

Reengineering

Reengineering — the radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed — requires that every employee and manager look at all aspects of the company's operation and find ways to rebuild the organizational systems to improve efficiency, identify redundancies, and eliminate waste in every possible way. Reengineering is neither easy nor cheap, but companies that adopt this plan have reaped remarkable results. The goal of reengineering is to bring about a tight fit between market opportunities and corporate abilities. After organizations are able to find this fit, new jobs should be created.

Which of the following is unwise in a strategic alliance? A. Setting clear expectations between members of the alliance B. Making sure all partners are treated fairly C. Maintaining open communication with strategic partners D. Relying on governing documents to make the venture work smoothly

Relying on governing documents to make the venture work is an unwise tactic when working in a strategic alliance. Members of a strategic alliance have a common aim, and they should work together to achieve that aim.

RACI

Responsible (also Recommender): who completes the task Accountable (also Approver or final approving authority): answerable for the correct and thorough completion of the deliverable Consulted (sometimes Consultant or counsel): those whose opinions are sought and with whom there is two-way communication Informed (also Informee): those whoa re kept up-to-date on progress, often only on completion of the task or deliverable; and with whom there is just one-way communication -often responsible and accountable are the same person, but otherwise each role should be assigned to a different person

Simulations

Simulations are a quantitative tool for decision making. Simulation is a broad term indicating any type of activity that attempts to imitate an existing system or situation in a simplified manner. Simulation is basically model building, in which the simulator is trying to gain understanding by replicating something and then manipulating it by adjusting the variables used to build the model.

What can stockholders reasonably expect of company managers?

Stockholders can reasonably expect company managers to add value to their investment. Issues of portfolio management are not within the responsibilities of corporate management.

Synergy

Synergy is the ability of the whole system to equal more than the sum of its parts.

360-degree feedback appraisal

The 360‐degree feedback appraisal provides performance feedback from the full circle of daily contacts that an employee may have. This method of performance appraisal fits well into organizations that have introduced teams, employee involvement, and TQM programs. Feedback comes from colleagues, managers, and subordinates.

Gilbreths (Classical school)

The Gilbreths studied job motions. Frank isolated the basic movements necessary to do the job and eliminated unnecessary motions. Workers using these movements raised their output from 1,000 to 2,700 bricks per day. This was the first motion study designed to isolate the best possible method of performing a given job. Later, Frank and his wife Lillian studied job motions using a motion‐picture camera and a split‐second clock. When her husband died at the age of 56, Lillian continued their work.

Hersey-Blanchard's situational model

The Hersey‐Blanchard Model of Situational Leadership is based on the amount of direction (task behavior) and amount of socioemotional support (relationship behavior) a leader must provide given the situation and the level of maturity of the followers.

Kaizen approach (Quality school)

The Kaizen (pronounced ky‐zen) approach uses incremental, continuous improvement for people, products, and processes. The reengineering approach focuses on sensing the need to change, seeing change coming, and reacting effectively to it when it comes. Both approaches are described in the following sections.

"It all depends" (Contingency school)

The appropriate management actions and approaches depend on the situation. Managers with a contingency view use a flexible approach, draw on a variety of theories and experiences, and evaluate many options as they solve problems.

Systems management theory

The systems theory encourages managers to look at the organization from a broader perspective. Managers are beginning to recognize the various parts of the organization, and, in particular, the interrelations of the parts (Inputs — material or human resources, Transformation processes — technological and managerial processes, Outputs — products or services, Feedback — reactions from the environment)

Which strategy should a company employ to combat high turnover in a competitive industry? A. Increase recruiting efforts. B. Make the workplace more competitive. C. Spend less on HR, since most employees leave anyway. D. Implement employee retention programs.

The company should implement employee retention programs. High turnover makes it difficult to implement larger strategies because the team is constantly being patched back together. Employee retention programs can include aspects such as health benefits, workplace perks, vested stock options, or retirements plans.

Dual concern model

The dual concern model of conflict resolution is a conceptual perspective that assumes individuals' preferred method of dealing with conflict is based on two underlying themes or dimensions: concern for self (assertiveness) and concern for others (empathy). According to the model, group members balance their concern for satisfying personal needs and interests with their concern for satisfying the needs and interests of others in different ways. The intersection of these two dimensions ultimately leads individuals towards exhibiting different styles of conflict resolution. The dual model identifies five conflict resolution styles/strategies that individuals may use depending on their dispositions toward pro-self or pro-social goals. Avoidance conflict style Competitive conflict style Conciliation conflict style Cooperation conflict style

First step in strategic management process

The first step in strategic management is to formulate a strategy. A well-formulated strategy will guide the rest of the management process.

Communication process

The goal of communication is to convey information—and the understanding of that information—from one person or group to another person or group. This communication process is divided into three basic components: A sender transmits a message through a channel to the receiver. (Figure shows a more elaborate model.) The sender first develops an idea, which is composed into a message and then transmitted to the other party, who interprets the message and receives meaning. Information theorists have added somewhat more complicated language. Developing a message is known as encoding. Interpreting the message is referred to as decoding. The other important feature is the feedback cycle. sender (ideas) --> messages (encodes) --> transmissions (signals) --> recipient (decodes) --> receiver (meaning) --> feedback --> sender...

Which of the following is an advantage of the holding company corporate structure? A. It reduces overhead and personnel costs because the corporate office is small. B. Executives have a great deal of control over daily operations. C. Executives are aware of decisions made at every level of the company. D. Integration between divisions increases efficiency and reduces costs.

The holding company structure reduces overhead and personnel costs by having a small corporate office. This structure is only appropriate when decentralized decision making is desirable, such as when one management company owns several companies in disparate industries

Which of the following is a strategic risk associated with outsourcing? Loss of non-vital skills Loss of critical skills Reduced personnel cost Decreased personnel flexibility

The loss of critical skills is a strategic risk associated with outsourcing. If the contracting company goes out of business, starts working for a competitor or asks for unreasonable terms, a company that has lost in-house critical skills could be in a dangerous strategic position.

Purpose of board of directors

The main purpose of the board of directors is to represent shareholders. Shareholders own the company, and the board must act to protect their interests. As a practical matter, members of the board might also be major shareholders.

Why might the market value of a software firm be higher than its book value? A. The market is placing value on the firm's intellectual assets. B. Software is often priced incorrectly. C. Tech firms use different accounting procedures than traditional firms. D. There is no reason for the market value to be higher.

The market value might be higher because the market is pricing based on the firm's intellectual assets. Even if there are no major products being sold, the market might trust that a talented group of software engineers will produce a winning program soon.

Which of the following is not an example of firm infrastructure giving a competitive advantage? A. Negotiators maintaining positive relationships with industry regulators B. Reducing costs by implementing efficient IT systems C. Company officers working with important customers to close a deal D. The marketing department helping the company enter a new market

The marketing department helping the company enter a new market is not an example of firm infrastructure giving the company a tangible advantage over its competitors. Firm infrastructure is the support of activites within a company such as legal, management, quality assurance, purchasing, financial, etc. Competitive advantage is any strategic advantage a firm has over it's competitors - having better relationships with regulators and customers or more efficient IT systems are forms of competitive advantage.

Bureaucracy

The mechanistic structure, sometimes used synonymously with bureaucratic structure, is a management system based on a formal framework of authority that is carefully outlined and precisely followed. An organization that uses a mechanistic structure is likely to have clear tasks, precise definitions of rights and obligations of members, clear line and staff positions with formal relationships, tendency toward formal communication throughout organizational structure. Appropriate when external environment is stable. Drawback is lack of flexibility (ex. university). The organic structure tends to work better in dynamic environments where managers need to react quickly to change. An organic structure is a management system founded on cooperation and knowledge‐based authority. It is much less formal than a mechanistic organization, and much more flexible. Organic structures are characterized by not highly-defined rules, tasks continually redefined, little reliance on formal authority, decentralized control, fast decision making, informal patterns of delegation and communication (ex. Salvation Army).

Vision vs. mission statement

The mission statement gives more pragmatic guidelines than the vision statement. The vision statement states a company's grand plans and overall direction, while the mission statement gives an idea of how those plans will be implemented.

House's path-goal theory

The path‐goal theory, developed by Robert House, is based on the expectancy theory of motivation. A manager's job is to coach or guide workers to choose the best paths for reaching their goals. Based on the goal‐setting theory, leaders engage in different types of leadership behaviors depending on the nature and demands of a particular situation. A leader's behavior is acceptable to subordinates when viewed as a source of satisfaction. He or she is motivational when need satisfaction is contingent on performance; this leader facilitates, coaches, and rewards effective performance. Path‐goal theory identifies several leadership styles: Achievement-oriented Directive Participative Supportive

Quality school of management

The quality school of management considers the following in its theory: Organization makeup. Organizations are made up of complex systems of customers and suppliers. Every individual, executive, manager, and worker functions as both a supplier and a customer. Quality of goods and services. Meeting the customers' requirements is a priority goal and presumed to be a key to organizational survival and growth. Continuous improvement in goods and services. Recognizing the need to pinpoint internal and external requirements and continuously strive to improve. It is an idea that says, "the company is good, but it can always become better." Employees working in teams. These groups are primary vehicles for planning and problem solving. Developing openness and trust. Confidence among members of the organization at all levels is an important condition for success.

What strategy is being implemented when a chain of grocery stores buys out a number of local farms and begins to grow its own produce?

This is an example of backward integration. It is backward because the company has taken a step behind them in the supply chain and integrated that step into its core business. Backward integration is a form of vertical integration, where the a company manages multiple levels of the supply chain for a line of production.

Nominal group technique (for decision-making)

This method involves the use of a highly structured meeting, complete with an agenda, and restricts discussion or interpersonal communication during the decision‐making process. This technique is useful because it ensures that every group member has equal input in the decision‐making process. It also avoids some of the pitfalls, such as pressure to conform, group dominance, hostility, and conflict, that can plague a more interactive, spontaneous, unstructured forum such as brainstorming.

Change leadership

Throughout a business' periods of change, which is just about all the time for a good organization, leaders must concentrate on having their people go from change avoidance to change acceptance. The five steps that accompany change—for individuals facing life‐altering circumstances and for organizations facing fundamental shifts—are denial, anger, bargaining, depression, and finally, acceptance. By positively promoting a change, a leader makes others want to be part of it.

Transformational leadership

Transformational leadership blends the behavioral theories with a little dab of trait theories. Transactional leaders, such as those identified in contingency theories, guide followers in the direction of established goals by clarifying role and task requirements. However, transformational leaders, who are charismatic and visionary, can inspire followers to transcend their own self‐interest for the good of their organizations. Transformational leaders appeal to followers' ideals and moral values and inspire them to think about problems in new or different ways. These leaders influence followers through vision, framing, and impression management.

Visionary leadership

Visionary leadership, a team‐based structure, participative strategy, a strong, adaptive internal culture, empowered employees, and open information characterize the learning organization. Consultant Peter Senge, author of the popular book, The Fifth Discipline, identifies the following ingredients of learning organizations: Mental models—setting aside of old ways of thinking Personal mastery—self‐awareness and ability to remain open to others Systems thinking—understanding of the plan of action Shared vision—mutual agreement to the plan of action Team learning—working together to accomplish the plan of action Senge's concept of the learning organization places high value on developing the ability to learn and then make that learning continuously available to all organizational members.

Job forms

W-4: Employee's Withholding Allowance Certificate USCIS Form I-9: Employment Eligibility Verification Form New Hire Reporting Form

Delphi technique (for decision-making)

With this technique, participants never meet, but a group leader uses written questionnaires to conduct the decision making.

KPI

a Key Performance Indicator (KPI) is a quantifiable metric that reflects how well an organization is achieving its stated goals and objectives

Ad hoc committee

a committee created for a specific short-term purpose

Six Sigma

a rigorous statistical analysis process that reduces defects in manufacturing and service-related processes

How to achieve effective team time management in complex project management

agree upon clearly defined channels

Scalar principle

clearly defined line of authority that includes all employees in the organization

An auditor would use this to determine that a purchase order is authorized An auditor would use this to verify that a requisition is properly authorized

current level of purchaser's signature authority approval signature to spend the funds SIGNATURES

Stages of planned change

cycle: -need for change -development of goals -selection of agent -diagnosis -selection of intervention method -plan -planning for implementation -implementation -follow-up and evaluation

Unity of command

employees should have one and only one supervisor

Intrapreneurship

encourages employees to pursue new ideas and gives them the authority to promote those ideas

Reduce email time

establish parameters for what FSO wants to see (NOT FYI)

Life-cycle cost analysis

first cost, including the cost of installation maintenance, life expectancy, and replacement cost

Authority

formal and legitimate right of a manager to make decisions, issue orders, and allocate resources to achieve outcomes

Aptitude tests are for assessing

general abilities in reasoning and written skills

Line authority

gives manager right to direct work of employees and make decisions without consulting others

An auditor evaluating the operations of a procurement would review this first

goals of the function and plans in place to achieve them

Human behavior in the workplace is known as

industrial or organization psychology

Whistleblower Protection Act

law that protects federal government employees in the United States from retaliatory action for voluntarily disclosing information about dishonest or illegal activities occurring at a government organization

Lack of accurate job descriptions could lead to

lawsuits for violations of the ADA

Pregnancy

legal to demand an employ supply medical documentation of pregnancy-related disability

Conflict resolution

methods and processes involved in facilitating the peaceful ending of conflict and retribution -group members attempt to resolve group conflicts by actively communicating information about their conflicting motives or ideologies to the rest of the group and by engaging in collective negotiation -methods: negotiation, mediation, mediation-arbitration, diplomacy, and creative peacebuilding

Pygmalion effect

occurs in the workplace when a manager raises his or her expectations for the performance of workers, and this actually results in an increase in worker performance

Empowerment

occurs when individuals in an organization are given autonomy, authority, trust, and encouragement to accomplish a task

How to fast track

parallel work

Organizational control

process of assigning, evaluating, and regulating resources on an ongoing basis to accomplish an organization's goals

Purchasing policies should

provide consistent means of determining proper methods for dealing with purchasing procedural issues

Arbitration

rbitration is probably the best known DRS method. In arbitration, parties agree to submit existing or future disputes to a neutral third party, the arbitrator, or a panel of arbitrators who decide how the dispute will be resolved. In binding arbitration, the decision of the arbitrator(s) is final and binding. In non-binding arbitration, the parties choose whether to accept the arbitrator's decision or to proceed to litigation.

Behavioral conflict resolution

reflective of how the disputants act, their behavior

Productivity

relationship between a given amount of output and the amount of input needed to produce it

First step in purchasing process

review requirements

Bar charts don't

show relationships among activities

Hawthorne effect

special attention researchers give to a study's subjects and the impact it has on findings

Motivating goals are

specific and challenging

Stafff authority

supports line authority by advising, servicing, and assisting, but it's limited

Task behavior, relationship behavior, maturity

task behavior: the extent to which the leader engages in spelling out the duties and responsibilities to an individual or group (one-way behavior) relationship behavior: the extent to which the leader engages in two‐way or multiway communications maturity: the willingness and ability of a person to take responsibility for directing his own behavior

Arrow diagramming/network diagramming/AOA (activity-on-arrow or) method

technique in which activities are represented by arrows

Halo effect

the tendency to draw a general impression about an individual on the basis of a single characteristic

Emotional conflict resolution

the way disputants feel about a conflict, the emotional energy

Performance management is substitute for

traditional appraisal systems

Scorecards

visual method to measure success of project management solutions