Management Final Review - Rutgers - Hamilton - (PREFERRED)

Similar-to-me effect

perceive others who are similar to ourselves more positively than we perceive people who are different

Salience effect

focus attention on individuals who are conspicuously different

Role of Experts- Business Improvement Leader

- Exp in work w/ business leaders to identify improvement opportunities + establish effective improvement project mgmt system and training system

Social status effect

- perceive individuals with high social status more positively than those with low social status

Drivers of unethical business strategies and business behavior

-Faulty internal oversight allows self-dealing in the pursuit of personal gain, wealth, and self-interest -Short-termism pressure to meet or beat short-term performance targets. -A culture that puts profitability and business performance ahead of ethical behavior

Managers

-Increase its performance

How do firms manage innovation (17)

-Innovation Strategy: Make innovation clearly part of business strategy -Organizing for innovation: rather than organizing to keep the existing products/services/processes going - Managing day to day innovation processes: To support new product new process development

Customers

-Most critical stakeholder - Company must work to increase efficiency and effectiveness in order to create loyal customers + attract new ones

Management Roles - Ethics Ombudsman

-Responsible for communicating ethical standards - Design systems to monitor employees - Teaching managers and employees at all levels of the organization how to appropriately respond to ethical dilemmas

Minimize Cycle Time

1. Achieve first to market advantages 2. Gaining the efficiency's from faster cycle times 3. Avoiding obsolescence 4. Controlled speed vs rush

Intervention Options (23)

1. Adaptation: Working with or around differences 2. Structural Intervention: Reorganizing to reduce friction 3. Managerial Intervention: Making final decisions without team involvement 4. Exit: Voluntary or involuntary removal of a team member

Building Competitive Advantage in International Markets

1. Use international location to lower cost or differentiate product 2. Share resources and capabilities 3. Gain cross-border coordination benefits

Process for Establishing Corporate Entrepreneurship: 9 steps

1. Commitment/Culture 2. Plan & Organize 3. Technology 4. Training 5. Customer Focus 6. Resource Management 7. Support Structure 8. Rewards 9. Evaluation System

What Factors Drive Globalization

1. Diminishing Distance and Communication Challenges 2. Evolving Political Economies 3. Recognition of the Mutual Benefits 4. Declining Barriers to Trade 5. The Development of the Multi-National Enterprise 6. Development and Support of Global Institutions

4 challenges in managing multi-cultural teams

1. Direct vs indirect communication 2. Trouble with accents and fluency 3. Differing attitudes toward hierarchy 4. Conflicting decision-making norms

Strategic Options

1. Export goods from domestic base 2. License production/distribution/marketing to foreign firms 3. Franchise to foreign entities 4. Establish a Wholly-Owned Subsidiary 5. Form Strategic Alliances or Joint Ventures with foreign companies

Growth Stages (20)

1. Wonder 2. Blunder 3. Thunder 4. Plunder 5. Assunder

Leadership Issues

1. Lack of leadership skills, experience, and know-how 2. Weak finance function 3. Turnover in key management personnel 4. Big- company influence in accounting: A mistake that some companies often make is to focus on accruals rather than cash

Development Strategies

1. Maximize fit with Customer Requirements 2. Minimize Cycle Time 3. Control Development Costs

Strategic Issues

1. Misunderstood market niche 2. Mismanaged relationships with suppliers and customers 3. Diversification into an unrelated business area 4. Mousetrap myopia: Related to problem of starting firm around idea, not an opportunity 5. Lack of contingency planning

The Implied Social Contract: To Do the Right Thing

1. Operate ethically and legally 2. Provide good work conditions for employees 3. Be a good environmental steward 4. Display good corporate citizenship

Reasons for Globalization

1. Overcome Distance and Communication -Cultural Advancement -Technological Advancement

Impediments to NPD Success

1. Risk averse corporate culture 2. Lengthy development time 3. Difficulty selecting the right idea 4. Rapidly changing technologies 5. Changing customer needs 6. Aggressive global competitors

Business Improvement consists of 3 core elements

1. Role of Leadership 2. Experts & Training 3. Proven Methodologies/Tools

Principles of senior management commitment

1. Strong senior management commitment 2. Business innovation strategy exists, has been converted into objectives 3. Project management system thru-out 4. Emphasizes market assessments 5. Emphasizes pre-development assessment

Role of Leadership

1.Establish the compelling case and priority for improvement 2.Appoint and empower improvement 3.Imbed improvement priority and philosophy 4.Hold the entire organization accountable 5.Reward & recognize results

Business Excellence Criteria Categories

1.Key Role of Leadership 2.Customer Focus 3.Process Management/High Performance Environment 4.Fact-Based Management & Evaluation 5.Improvement & Innovation 6.Continuous Assessment & Renewal

Control Development Costs

1.Speed/Cost Risk Optimization 2. Benefit/Cost Optimization 3. Prioritization

Process Mapping

1.Used to describe the process visually 2.Clarifies the steps/sequence in the process 3.Clarifies who performs each step 4.Identifies how the work flows through the organization 5.Identifies where the key linkages are with other parts of the organization 6.Helps to identify areas for improvement

3M "Time to Think" Model (19)

3M encourages people to spend 15% of time on own projects

Distributive Justice

A moral principle calling for fair distribution of pay, promotions, and other organizational resources based on meaningful contributions that individuals have made and not personal characteristics over which they have no control.

Procedural Justice

A moral principle calling for the use of fair procedures to determine how to distribute outcomes to organizational members.

Ethical Dilemma

A quandary people find themselves in when they have to decide if they should act in a way that might help another person even though doing so might go against their own self-interest

Achievement

A worldview that values assertiveness, performance, success, and competition

Short Term Orientation

A worldview that values personal stability or happiness and living for the present

Collectivism

A worldview that values subordination of individual to the goals of the group

Long Term Orientation

A worldview that values thrift and persistence in achieving gols

Performance Management consists of 3 core elements

A. Process Management B. Business Assessment/Measurement C. Business Improvement

Sustainable Business Practices

Are those practices of a firm that meet the needs of the present without compromising the ability to met the needs of the future

Religion

Accommodation for Religious Beliefs Scheduling of critical meetings Providing flexible time off for holy days Posting holy days for different religions on the company calendar

Benefits of Growth for firm (More power for owner to influence performance)

Advantages of Size: 1. Increased production efficiency 2. Increased bargaining power with supplies 3. Increased legitimacy with customers, financiers, other stakeholders

Age

Aging U.S. Population Median age in the United States is 36.9 years, by 2030 20% of the population will be over 65 Federal Age Discrimination Laws 1964 Title VII of the Civil Rights Act of 1964 Prohibits discrimination in employment decisions 1967 Age Discrimination in Employment Act Prohibiting discrimination against workers over 40 and restricts mandatory retirement

Schema

An abstract knowledge structure stored in memory that allows people to organize and interpret information about a person, event, or situation

Practical Rule

An ethical decision should be one that a manager has no hesitation about communicating to people outside the company

Moral Rights Rule

An ethical decision should maintain and protect the fundamental rights and privileges of people

Utilitarian Rule

An ethical decision should produce the greatest good for the greatest number of people

Entrepreneurial Thinking

An individuals' mental processes of overcoming ignorance to: Decide whether a signal represents an opportunity Decide whether that opportunity is applicable to the individual specifically Process feedback from action steps taken

(Forms of Sexual Harassment) Quid Pro Quo

Asking for or forcing an employee to perform sexual favors In exchange for receiving some reward or avoiding negative consequences

The Moral Case for an Ethical Strategies:

Because a strategy that is unethical is morally wrong and reflects badly on the character of the firm's personnel.

The Business Case for Ethical Strategies:

Business Case for Ethical Strategies: Because an ethical strategy can be both good business and serve the self-interest of shareholders.

Race and Ethnicity

Census Bureau distinguishes between races Legal remedies to racial and ethnic discrimination Title VII of the Civil Rights Act of 1964 Civil Rights Act of 1991 - monetary damages for discrimination

How Innovation Happens

Combine creative ideas with resources and competencies to create a useful, value-creating new product, new service, or new process - and then successfully COMMERCIALIZE it!

Proactive approach

Companies actively embrace socially responsible behavior, going out of their way to learn about the needs of different stakeholder groups and utilizing org resources to promote interests of all stakeholders

Defensive Approach

Companies and managers stay within the law and abide strictly with legal requirements but make no attempt to exercise social responsibility

Accomadative approach

Companies behave legally and ethically + try to balance interests of stakeholders

(Approaches) Ostructionist

Companies choose not to behave in a socially responsible way and behave unethically and illegally

Forces in Task Environment

Competitors Distributors Suppliers Customers

Business Assessment

Comprehensive evaluation of business performance and business process management against a core set of fundamental business excellence criteria

Resource Concentration vs Dispersion

Concentrate: Locational cost adv Scale economies Learning/exp benefits Superior resources exist in a single country Disperse: High transport costs Diseconomies of scale Trade barriers High exchange rate risks High political risks Benefits from access to multin-location resources and expertise

Greenfield

Conditions are favorable for using an internal strategy

Environmental Sustainability Strategy

Consists of the firm's deliberate actions to: Protect the environment. Provide for the longevity of natural resources. Maintain ecological support systems for future generations. Guard against ultimate endangerment of the planet.

Key Role of Leadership

Create and communicate clear vision and direction for business. Build capabilities balance long term and short term

Low Uncertainty Avoidance

Cultures are easygoing, value diversity, and tolerate differences in personal beliefs and actions

Dumping is not a fair-trade practice

Gov can be expected to retaliate - WTO policies to discourage such practices

The Intention to Act Entrepreneurially

Entrepreneurial intentions: Motivational factors that influence individuals to pursue entrepreneurial outcomes Entrepreneurial self-efficacy Conviction that one can successfully pursue entrepreneurial outcomes Perceived desirability Degree to which a potential entrepreneurial outcome is evaluated as favorable or unfavorable

Key Elements DMAIC

Define - Use flow charts to identify customers, suppliers, and those who perform key steps in the process (SIPOC Model) Measure - Create outcome and predictive measures that allow complete understanding of process performance Analyze - Use the measures and process maps to understand the performance of the process vs. goals and benchmarks Improve/Innovate- Make improvement a routine activity using basic/advanced tools & methods Control - Make sure the process and improvements continue to provide consistent, predictable performance.

DMADV methodology

Define, Measure, Analyze, Design, Verify

Power Distance

Degree to which societies accept the idea that inequalities in power and well-being of their citizens are due to differences in individuals physical and intellectual capabilities and heritage

ROE: Black Belt

Demonstrated expertise in managing multiple successful improvement projects using the tools

Sigma Level

Deviations per opportunity or per million opportunities, calculated using a DPMO conversion table. If a process performs with 3.4 or less defects per million opportunities it is six sigma quality

Capabilities and Disabilities

Disability Issues for managers Hesitancy for employees to reveal disabilities leading to misunderstanding or miscommunication Implementation of reasonable accommodations for individuals with disabilities Promoting a nondiscriminatory workplace environment Educating the organization about disabilities Educating the organization about HIV (AIDS)

(23) Diversity

Dissimilarities/differences among people in age, gender, race, ethnicity, religion, sexual orientation, socioeconomic background, and capabilities/disabilities

Stage-Gate Process for Product Development

Each Stage includes: Deliverables, Criteria, Outputs Each Gate Decision: Go, Kill, Hold, or Recycle

General Environment Forces

Economic Sociocultural Political and Legal Technological Demographic

Includes

Economies of scale Cost advantages associated with large operations Brand loyalty Customers' preference for the products of organizations currently existing in the task environment. Government regulations that impede entry

Emerging Market

Economy with low-middle per capita income

Facilities/Space Limitations

Expansion of space or facilities is a problem and one of the most disrupting events during the early explosive growth of a company.

Employees

Expect rewards consistent with performance.

ROE: Master Black Belt

Expert + exp in process, methods, and tools used in improvement projects. Exp training + coaching Black Belts and Green Belts

Barriers to Entry

Factors that make it difficult and costly for the organization to enter a particular task environment or industry

Fast Follower Strategy

Firm must be very good with innovation and have strong R&D, and be good at figuring out why the first mover failed to exploit the market so they can leapfrog fast and grab the market

The Globalization of Production

Firms source goods and services from locations around the globe to capitalize on national differences in the cost and quality of factors of production like land, labor, energy, and capital

Reactive Strategy

Firms that are followers and have a focus on operations, have a wait and see approach and look for low risk opportunities, will copy proven innovation

Niche Strategy

Focus on specific niche market, requires a close connection to customers on what they want as far as product differentiation

(15) How does Performance Management work?

Focuses on capabilities/processes

3. Recognition of the Mutual Benefits

Free-Trade Doctrine: The idea that if each country specializes in the production of the goods and services that it can produce most efficiently, this will make the best use of global resources and will result in lower prices

GATT

General Agreement on Tariffs and Trade, April 1947

6. Development of Global Institutions

Global Institutions: - Help manage, regulate, and police the global marketplace - Promote, the establishment of multinational treaties to govern the global business system

Lean

Goal: Eliminate all waste in value creation process Waste: Anything that does not create value for customer

Organizational Ethics

Guiding practices and beliefs through which a particular company and its managers view their responsibility toward their stakeholders Top managers play a crucial role in determining a company's ethics

Cultural DImensions (21)

Hofstede

Values

Ideas about what a society believes to be good, right, desirable and beautiful

(18) Why New Product Development is Important

In many industries >50% of sales comes from products introduced in the last 5 years (e.g., electronics, autos, telecommunications)

First Mover Strategy

Innovation culture, able to create and then dominate the market against fast followers

Gender Schema

Preconceived beliefs or ideas about the nature of men and women, their traits, attitudes, behaviors, and preferences

(20) Growth Strategies - Integration Approaches

Integration Strategies: 1. Backward integration: A step back up in the value-added chain toward the raw materials 2. Forward Integration: A step forward down in the value-added chain toward the customers 3. Horizontal Integration: Buying a competitor

Business Process Reengineering (BPR)

Involves radically redesigning and streamlining how an activity is performed, with the intent of achieving quantum improvements in performance.

Sustainability

Is the relationship of a firm to its environment and its use of natural resources

The Ethics Code Litmus Test

Is what we are proposing to do fully compliant with our code of ethics? Are there areas of ambiguity? Is this action in harmony with our core values? I this action ethically objectionable?

Overt Discrimination

Knowingly and willingly denying diverse individuals access to opportunities and outcomes in an organization Unethical and illegal Subjects firm to lawsuits Example - Nike racial discrimination at its Chicago Niketown store: Damaged Nike's reputation Nike had to pay out a financial settlement

House of Quality

Links customer requirements to product/service design specifications using a matrix format

Appearance

Managers need to ensure that all employees are treated fairly regardless of physical attributes

Why do orgs implement Business Improvement process?

Managers routinely achieve higher project success rates and deliver better overall performance results

5. Development of MNEs

Multinational Enterprise: Any business that has productive activities in two or more countries

Maximizing Fit with Customer Requirements

Must offer more compelling features, greater quality, more attractive pricing, better value than competing products

Advanced R&D

New Technologies for new uses and users

Platform

Next generation and new system i.e. Like ipod

Self-Dealing

Occurs when managers take adv. of their positions to further their own private interests rather than those of the firm

All Businesses Face 6 types of risks (16)

Operational Risks (technology, process, org.) Financial Risks (profitability, funding, liquidity) Strategic Risks (general, supply chain, projects) Market Risks (macroeconomic, market development) Geopolitical Risks (sociopolitical, legal, infrastructure) Catastrophic Risks (environmental, manmade, violence)

More Challenges for Rapidly Growing Firms

Opportunity Overload: Many firms face an abundance of opportunities Abundance of Capital: Most growing firms are not constrained by this

Entering EM (22)

Prepare to compete on the basis of low price. Prepare to modify the firm's business model or strategy to accommodate local circumstances. Try to change the local market to better match the way the firm does business elsewhere. Avoid developing markets where it is too difficult or costly to accommodate local circumstances.

Individual Ethics

Personal standards and values that determine how people view their responsibilities to other people and groups How they should act in situations when their own self-interests are at stake

Community

Physical locations like towns/cities in which companies are located

PDCA

Plan, Do, Check, Act PDCA is four-step mgmt method used for conrol + continuous improvement of processes and products (Deming Circle)

2. Evolving for Political Economies

Political Economy: Refers to the interdependent nature of the economic, political, and legal systems within a country

(22) Risk Associated with International Business

Political Risks: Stem from instability or weaknesses in national governments and hostility to foreign business Economic Risks: Stem from the stability of a country's monetary system, economic and regulatory policies, reliability of infrastructure, and the lack of property rights protections.

Challenges of Growth for the Firm

Pressures on: 1. Human Resources 2. Management of employees 3. Entrepreneur's time 4. Financial resources

Customer Focus

Products and services catered to customer that is superior to competitive options

The Triple Bottom Line: Excelling on Three Measures ofCompany Performance

Profit, People, and Planet

Six Sigma (3.4 defects/million opportunities)

Programs utilize adv stat methods to improve quality by reducing defects + variability in the perf of bus processes by using DMAIC methodology

4. Declining Barriers to Trade

Reduction of Tariffs

Socioeconomic Background

Refers to a combination of social class and income-related factors Socioeconomic Implications Savings, financial security, home ownership Affordability of child care Socioeconomic diversity requires that managers be sensitive and responsive to the needs and concerns of individuals who might not be as financially well off as others

Derivative (18)

Rework existing platforms or product categories to fit a particular need or niche, like I-pads for executives

Importance of Management Competence

Sean Parker

Dumping

Selling goods in foreign markets at prices that are below: normal home market prices, or below the full costs per unit.

Global Environment

Set of forces and conditions in the world outside org's bounderies

(Forces) Task Environment

Set of forces and conditions that originate with suppliers, distributors, customers, and competitors and affect an organization's ability to obtain inputs and dispose of its outputs because they influence managers daily

Sexual Orientation

Sexual Orientation Issues Employment and workplace discrimination Provision of same-sex partner benefits

Decision Making

Short term planning instead of long term strategy. Many of the representatives of these firms argued that under conditions of rapid growth, strategy was only about 10% of story.

Justice Rule

Should distribute benefits and harm among people in a fair, equitable, and impartial manner

Stereotype

Simplistic and often inaccurate beliefs about the typical characteristics of particular groups of people

High Uncertainty Avoidance

Societies are more rigid and expect high conformity in their citizens beliefs and norms of behavior

Examples of Effective Diversity Management

Sodexo, Inc. has series of org-wide-award-winning diversity initiatives -Diversity training -Base 25% of top manager bonuses on their performance on diversity initiatives, including hiring and training diverse employees

Breakthrough

Some combo of new tech and uses i.e. Apple I-Pod

Occupational Ethics

Standards that govern how members of a profession, trade, or craft should conduct themselves when performing work-related activities

Societal Ethics

Standards that govern how members of a society should deal with one another in matters involving issues such as fairness, justice, poverty, and the rights of the individual People behave ethically because they have internalized certain values, beliefs, and norms

Suppliers and Distributors

Suppliers: Expect to be paid fairly + promptly for their inputs Distributors: Expect to receive quality products at agreed-upon prices

Hostile Work Enviroment

Telling lewd jokes, displaying pornography, making sexually oriented remarks about someone's personal appearance, and other sex-related actions that make the work environment unpleasant - Interferes with their ability to perform their jobs effectively

Short-Termism

Tendency for managers to focus excessively on short-term performance objectives at the expense of longer-term strategic objectives.

Creativity

The ability to produce work that is useful and novl

(17) Innovation

The act of introducing novel and useful ideas into value-creating new products, new services, or new processes

(16) Business Improvement

The creation of an improvement oriented culture and management process that utilizes improvement experts and proven tools to achieve superior levels of performance

Uncertainty Avoidance

The degree to which societies are willing to tolerate uncertainty and risk

(25) Ethical Management Ethics:

The inner-guiding moral principles, values, and beliefs that people use to analyze or interpret a situation and then decide what is the right or appropriate way to behave

(19) Corporate Entrepreneurship

The intention to engage in the creation of new products or processes and/or enter in to new markets

Glass Ceiling

The invisible barriers that prevents minorities and women from being promoted to top corporate positions

Stakeholders

The people and groups that supply a company with its productive resources and so have a claim on and stake in the company When the law does not specify how companies should behave, managers must decide what is the right or ethical way to behave toward the people and groups affected by their actions

Perception

The process through which people select, organize, and interpret what they see, hear, touch, smell, and taste to give meaning and order to the world around them

Global Outsourcing

The purchase or production of inputs or final products from overseas suppliers to lower costs and improve product quality or design

Globalization Process

The set of specific and general forces that work together to integrate and connect economic, political, and social systems across countries, cultures, or geographical regions so that nations become increasingly interdependent and similar.

Globalization

The shift toward a more integrated and interdependent world economy

Collective Distaster

When one or more people start profit from being unethical because this encourages other people to act in the same way

Bias

The systematic tendency to use information about others in ways that result in inaccurate perceptions

Corporate Social Responsibility

The way a company's managers and employees view their duty or obligation to make decisions that protect, enhance, and promote the welfare and well-being of stakeholders and society as a whole

Cash Flow Management (Babson Study)

These firms all pointed to problems of cash burn rates racing ahead of collections. They found that unless effective integrated accounting, inventory, purchasing, shipping, and invoicing systems and controls are in place, this misalignment can lead to chaos and collapse.

Global Strategy

Think global, act global

Transnational Strategy

Think global, act local

Multidomestic Strategy

Think local, act local

Training

Train all mgmt teams in core concepts of Perf Mgmt including Bus Improvement

ROE: Green Belt

Trained in using methods and tools with only one successful project completion

(24) Sources of Discrimination based on Gender:

Unequal Pay Discrimination based on gender in hiring, firing, pay promotion and working conditions Pregnancy Discrimination & Work Situations Family and Medical leave Underrepresentation of women in management, senior management, & board positions

Norms

Unwritten, informal codes of conduct that prescribe how people should act in particular situations and are considered important by most members of a group or organization

Process Management/ High Performance Environment

Use a process-based view of work that integrates multiple functions working in collaboration to create a high performance environment

Continuous Assessment & Renewal (15)

Use comprehensive criteria to routinely assess the business and validate findings through an independent review. Develop clear strategies to sustain and enhance business results in the future.

Improvement & Innovation

Use proven improvement methodologies to address strategic needs and performance gaps. Use highly competent improvement experts who rely on a common language and toolset and who are skilled in collaboration and project leadership. Seek to find new, innovative ways to create value for customers and the organization.

Fact-Based Management & Evaluation

Use system of balanced measures aligned with business goals and strategy. Include outcome and driver metrics both leading and lagging indicators of performance. Benchmark against standards of excellence as well as competitors.

Process Maps

Used to depict and describe a process

Design for Six Sigma (DFSS)

Used to design new processes and seeks to avoid manufacturing process problems by using advanced Voice of the Customer(VOC) techniques and proper systems engineering techniques to avoid process problems. Utilizes DMADV methodology

Defect Rates

Used to determine the # deviations from expected performance for a given process for a given number of opportunities

Control Charts

Used to measure whether a process is in control

Build a Resource-Based Competitive Advantage By:

Using powerful brand names to extend a differentiation-based competitive advantage beyond the home market. Coordinating activities for sharing and transferring resources and production capabilities across different countries' domains to develop market dominating depth in key competencies

Individualism

Values individual freedom and self expression

(Type of stakeholders) Stockholders

Want to ensure that managers are behaving ethically and not risking investors' capital by engaging in actions that could hurt the company's reputation Want to maximize their return on investment

International Competition

When the same companies compete against one another in multiple geographic markets, the threat of cross-border counterattacks may be enough to deter aggressive competitive moves and encourage mutual restraint among international rivals.

Nurturing

Worldview that values the quality of life, warm personal friendships, and services and care for the weak

Reputation

esteem or high repute that individuals or organizations gain when they behave ethically

Bad decisions include:

not hiring qualified people failing to promote top-performing subordinates promoting poorly performing managers because they have the same "diversity profile"

Trust

willingness of one person or group to have faith or confidence in the goodwill of another person