Mgt Exam 2

What is design thinking? What are the three steps in the design thinking process? Bonus: What example did Sharon Garavel present in class that illustrated the importance of observation?

Design thinking refers to an approach to defining, investigating, and solving complex, ill structured problems. The three steps in the design thinking process are (1) Observe (2) Brainstorm (3) Prototype I THINK: The example Sharon Garavel gave in class that illustrated the importance of observation is when she described how once she got the role as CEO? She went around and learned what each of her employees does, by doing this she was able to observe where there were job complications with certain systems and was able to get these systems updated in order to save time and increase productivity.

Explain expectancy theory, and discuss how managers can use this model to help motivate employees. From the article, "8 Tips to Help First Time Managers Thrive," explain two tips that could help facilitate motivation as it relates to this theory.

Expectancy Theory - people are motivated by 2 things: how much they want something and how likely they think they are to get it As a manager, you should know what rewards your employees value, be clear about what they need to do in order to receive this reward, communicate with them the level of performance reached within a certain time period will result in this amount/kind of reward, and develop trust with employees so that they know you are willing and able to give them the rewards you promise.

Describe the barriers to the success of control systems. Consider one of your college classes as an example and your instructor as someone who would like to have good control systems in place. Explain if and how the barriers have detracted from performance in the class

1. Too Much Control Some organizations, particularly bureaucratic ones, try to exert too much control. They may try to regulate employee behavior in everything from dress code to timing of coffee breaks. Allowing employees too little discretion for analysis and interpretation may lead to employee frustration—particularly among professionals, such as college professors and medical doctors. Their frustration may lead them to ignore or try to sabotage the control process. 2. Too Little Employee Participation As highlighted by W. Edwards Deming, discussed elsewhere in the book (Chapter 2), employee participation can enhance productivity. Involving employees in both the planning and execution of control systems can bring legitimacy to the process and heighten employee morale. 3. Overemphasis on Means Instead of Ends We said that control activities should be strategic and results oriented. They are not ends in themselves but the means to eliminating problems. Too much emphasis on accountability for weekly production quotas, for example, can lead production supervisors to push their workers and equipment too hard, resulting in absenteeism and machine breakdowns. Or it can lead to game playing—"beating the system"—as managers and employees manipulate data to seem to fulfill short-run goals instead of the organization's strategic plan. getting reports done, to the exclusion of other performance activity. Reports are not the be-all and end-all. Undue emphasis on reports can lead to too much focus on quantification of results and even to 4. Overemphasis on Paperwork A specific kind of misdirection of effort is management emphasis on falsification of data. Example: A research laboratory decided to use the number of patents the lab obtained as a measure of its effectiveness. The result was an increase in patents filed but a decrease in the number of successful research projects.69 5. Overemphasis on One Instead of Multiple Approaches One control may not be enough. By having multiple control activities and information systems, an organization can have multiple performance indicators, thereby increasing accuracy and objectivity. Example: An obvious strategic goal for gambling casinos is to prevent employee theft of the cash flowing through their hands. Thus, casinos control card dealers by three means. First, they require they have a dealer's license before they are hired. Second, they put them under constant scrutiny, using direct supervision by on-site pit bosses as well as observation by closed-circuit TV cameras and through overhead one-way mirrors. Third, they require detailed reports at the end of each shift so that transfer of cash and cash equivalents (such as gambling chips) can be audited.70 ●

List and explain Kotter's eight steps to avoiding the eight common errors senior management usually makes when leading organizational change. Suppose Bryant University wanted to decrease the incidence of underage drinking among our students both on and off campus. How should Bryant use Kotter's eight steps to guide its actions?

1.Establish sense of urgency 2. Create guiding coalition 3.Develop vision and strategy 4. Communicate change vision 5. Empower broad-based action 6. Generate short-term wins 7. Consolidation gains and produce more change 8. Anchor new approaches in culture -dangers with drink and what can happen to you, propose alternate weekend activities, set plan in motion, give incentives for going

List, define and describe the four types of financial controls. Why are they important?

Budget Formal financial projection It states an organization's planned activities for a given period of time in quantitative terms such as dollars hours or number of products It is important so that managers have a yardstick to measure performance and make comparisons Incremental budgeting = allocated increased or decreased funds to a department by using the last budget period as a reference point; only incremental changes in the budget request are reviewed Fixed vs. variable budgets = Fixed→ allocates resources on the basis of a single estimate of costs variable→ allows the allocation of resources to vary in proportion with various levels of activity Financial Statements A summary of some aspect of an organization's financial status It is important to that managers can maintain financial control over the organization Balance sheet= summarizes an organization's overall financial worth-- that is assets and liabilities- at a specific point in time Income statement= summarizes an organization's financial results- revenues and expenses- over a specific period of time Ratio Analysis The practice of evaluating records It is important so that managers can determine an organization's financial health Liquidity ratios→ how easily an org's assets can be converted into cash Debt management ratios→ degree to which an org can meet its long term financial obligations Asset management ratios→ how effectively an org is managing is assets Return ratios→ Return on investments (ROI) → Return on assets (ROA) → how effective management is in generating a return, or profits, on its assets Audits Formal verifications of an org's financial and operational systems It is a tool for management decision making External vs internal External=formal verification of an org's financial accounts and statements by outside experts → Ex: CPAs Internal= verification of an org's financial accounts and statements by the org's own professional staff→ these help uncover inefficiencies and thus help managers evaluate the performance of their control systems

What are the four common characteristics of successful control systems? What are at least four barriers to a successful control system? Relate this to Hiram's initiatives in the Best Laid Incentives Plan case. Be specific.

Characteristics of successful control systems: Strategic & Results Oriented Timely, Accurate, Objective Realistic, Positive, Understandable, Encourage Self-Control Flexible Barriers to a successful control system: Too much control Too little employee participation Overemphasis on paperwork Overemphasis on one instead of multiple approaches Overemphasis on means instead of ends Example: Hiram focused on what he needed to fix, the CEO did not give any insights or participated. There were no conversations with employees, no feedback from them, Hiram took control over everything without getting feedback and interacting with employees, led to consequences. Hiram focused on means instead of ends, he fired people because of cost but did not consider the consequences. Hurt the company, productivity went down.

What is control, what is its purpose, and what are the six reasons that control is needed in organizations? What are some of the downsides of tight control systems? Relate this to the Best Laid Incentives Plan case

Control is making something happen the way it was planned to happen. Controlling is defined as monitoring performance, comparing it with goals, and taking corrective action as needed. Controlling is the fourth management function and its purpose is to make sure that performance meets objectives. Control is needed in organizations for 6 reasons: To adapt to change and uncertainty To discover irregularities & errors To reduce costs, increase productivity, or add value To detect opportunities To deal with complexity To decentralize decision making & facilitate teamwork Some of the downsides of tight control systems is employee frustration, this frustration can lead them to ignore or try to sabotage the control process. Relation to Best Laid Incentives Case: Hiram tried to take control of everyone in the company, to the point where he was firing people if they did not live up to his specific expectations, and this negatively impacted the company.

Explain equity theory and discuss how managers can use this model to help motivate workers. Give an example from a team experience of an inequitable situation, and use it to illustrate how people react to such circumstances.

Equity theory= in the area of employee motivation, the focus on how employees perceive how fairly they think they are being treated→ Ex; if you do all your work but get the same grade as someone that does nothing (unfair) (comparison) 3 elements: inputs = what do you think you're putting into the job outputs/rewards= what do you think you're getting out of the job comparison= how do you think your ratio of inputs and rewards compares with those of others Employees are motivated to see fairness in the rewards they expect for task performance. Employees are motivated to resolve feelings of injustice Team experience: In Katie's previous place of employment, she has witnessed people getting very frustrated because they were doing a majority of the work but everybody was being paid the same. This led to employees quitting due to the inequality in pay.

Describe four techniques that are available for improving quality.

Establish Standards - by stating desired performance level for a given goal Measure Performance - by getting written or oral reports about progress achieved, or personal observation Compare Performance Standards - by seeing how progress lines up with the standards established Take Corrective Action - if necessary, by giving rewards for meeting or exceeding standards, or adjust standards moving forward

List the steps in the control process. Relate each step to your service learning project experience thus far.

Establishment standards Measure performance Compare performance Take corrective action if necessary

Explain the need-based perspective on motivation. Identify three of this type of theory, and list the needs that each includes. Relate one of these to the Perfect Pizzeria case. Be specific with your answer.

Maslow--> self-actualization, esteem, love, safety,physiological Mccelland's--> achievement, affilication, power herxberg--> higene, motivation

Explain the difference between motivating factors and hygiene factors in Herzberg's theory of motivation. Using the Perfect Pizzeria case, give at least one example of each. How could a manager use this distinction in trying to motivate employees at the pizzeria?

Motivating factors - "what will make my people satisfied?" Motivating factors associated with job satisfaction-such as achievement, recognition, responsibility, and advancement. Examples: challenges, opportunities, recognition. Example from Pizzeria: free pizza , salad and soft drinks that employees can have every 6 hours of work. Hygiene factors - "why are my people dissatisfied?" Factors associated with job dissatisfaction- such as salary, working conditions, interpersonal relationships, and company policy. Example from Pizzeria: benefits that employees had such as free pizza, salad, or drinks were cut. Employees were forced to stay, couldn't quit. Lie detector. A manager can create better working conditions, get rid of lie detectors and build stronger relationships with employees to make them more excited to go to work and stay. Motivate by creating a wall with employee of a month. Managers could use this distinction in order to motivate the employees by rewarding good performance and punishing bad performance

What are the two core principles of TQM? Explain the assumptions underlying each. Give a specific example of how each would be used in a business setting. Could they be used on your service learning team? How?

People orientation - everyone involved with the organization should focus on delivering value to customers Delivering customer value is most important People will focus on quality if given empowerment TQM requires training, teamwork, and cross-functional efforts How could it be used? Special-purpose team comes together to find solution, using members from different departments Improvement orientation - everyone should work on continuously improving the work processes It's less expensive to do it right the first time It's better to do small improvements all the time Accurate standards must be followed to eliminate small variations There must be strong commitment from top management How can it be used? Outsourcing allows an outsider to complete a task that might otherwise be more expensive or take more time to do in house Yes, we are sort of using special teams to divide and conquer tasks that still need to be done, like finalizing a location and getting entertainment. Outsourcing probably couldn't be used because although we could hire a professional event planner, it would cost the non profit much more.

Explain the six areas of organizational control. Relate at least three of these controls to Hiram's initiatives in the Best laid Incentives Plan case (what did Hiram do, what was the consequence, and what type of control was he using?).

Physical Area - buildings, equipment, tangible products Human Resource Area - monitors employees includes personality tests, drug testing for hiring, performance evaluations and employee surveys to assess job satisfaction and leadership Informational Area - Production schedules. Sales forecasts. Environmental impact statements. Analyses of competition. Public relations briefings Financial Area - Are bills being paid on time? How much money is owed by customers? How much money is owed to suppliers? Structural Area - How is the organization arranged from a hierarchical or structural standpoint Bureaucratic control - an approach to organizational control that is characterized by use of rules, regulations and formal authority to guide performance. Decentralized control - an approach to organizational control that is characterized by informal and organic structural arrangements. This form of control aims to get increased employee commitment, using the corporate culture, group norms, and workers taking responsibility for their performance 6) Cultural Area - influences the work process and levels of performance through the set of norms that develop as a result of the values and beliefs that constitute an organization's culture Hiram's initiatives in the Best Laid Incentives Plan case Human Resource Area Wall of shame - monitor employees' performance and put the name of the worst offenders on the wall of shame. Did not necessarily motivate employees. There was no role models, no monitoring, no feedback or conversations with employees. 2) Informational Area Quarterly meetings with corporate executive council 3) Financial Area Hiram imposed an across the board headcount reduction of 10% on all the units. Because the reduction was based on headcount not costs, managers had tended to fire low level people, crippling the company without saving much money. And because the reduction was across the board, the highest performing departments had been forced to lay off some of the company's best employees.

1. What is productivity? Why is increasing productivity important? In the context of a specific job, preferably from your own experience, list and give examples of the six ways that managers can improve productivity, relating at least one to your service learning team experience.

Productivity is defined as outputs divided by inputs for a specific time period. Outputs is defined as goods plus services. Inputs is defined as labor, capital, materials, and energy. Productivity is important more goods and services that are produced and made easily available to us and for export, the higher our standard of living. Increasing the gross domestic product—the total dollar value of all the goods and services produced in the United States—depends on raising productivity, as well as on a growing workforce. Establish Base Points, Set goals, and measure results Use new technology Improve match between employees and jobs Encourage employee involvement and innovation Encourage employee diversity Redesign the work process

List and explain the eight tips to help first time managers thrive. How might you use any of these tips to assist you in your first management job?

The 8 tips to help managers thrive are: Understand the business - you need to be prepared to address questions in the business environment Prioritize one on one check ins- prioritize time with individual meetings and try to create touch points as a manger Stay in the trenches - keep an eye out for everything and be great at whatever you do You are the example - managers are people who are often looked at, so be an example and have a good reputation if you are a manger Understand the importance of delegation- understand early on what you as a Manager will be involved in. Find a mentor- find someone you can ask questions to so you as the Manager can handle them Be consistent- do not flip flop on you as a manager handle decisions because the word will not be as trusted Know that relationships have changed- you as a manager must know changes for the better and they are simply different not worse.

Explain the four perspectives of the balanced scorecard and how a balanced scorecard is related to a strategy map. How could this assist your team to better manage the service learning project?

The strategy map breaks down the 4 perspectives into a visual representation so that managers can communicate their goals so that everyone in the company can understand how their jobs are linked to the overall objectives in the organization (cause and effect) Financial perspectives→ how do we look to shareholders? Not having a budget to work with Customer perspectives→ how do customers see us? Putting attendees in mind and what would they want at this event Internal business perspective→ what must we excel at? It is important to do all necessary steps on the GANTT chart for a successful event Innovation and learning perspective→ can we continue to improve and create value? Design thinking process→ how might we growth

List and describe the seven TQM techniques. Describe how a company would implement three of these techniques.

Total quality management (TQM) is a comprehensive approach—led by top management and supported throughout the organization—dedicated to continuous quality improvement, training, and customer satisfaction. 1 Make continuous improvement a priority. TQM companies are never satisfied. They make small, incremental improvements an everyday priority in all areas of the organization. By improving everything a little bit of the time all the time, the company can achieve long-term quality, efficiency, and customer satisfaction. 2 Get every employee involved. To build teamwork, trust, and mutual respect, TQM companies see that every employee is involved in the continuous improvement process. This requires that workers must be trained and empowered to find and solve problems. 3 Listen to and learn from customers and employees. TQM companies pay attention to their customers, the people who use their products or services. In addition, employees within the companies listen and learn from other employees, those outside their own work areas. 4 Use accurate standards to identify and eliminate problems. TQM organizations are always alert to how competitors do things better, then try to improve on them—a process known as benchmarking. Using these standards, they apply statistical measurements to their own processes to identify problems.

List and describe Lewin's change model. Suppose Bryant University wanted to decrease the incidence of underage drinking among our students both on and off campus. How should Bryant use Lewin's change model to guide its actions?

Unfreezing - create the motivation to change (show students the dangers of drinking irresponsibly) Changing - new information, model, and proceeds (new policies) Refreezing - support and reinforce the change (keep up with progress)

List at least four reasons why knowledge of motivation important to managers. Relate this to your service learning project

Unfulfilled Needs Motivation Behaviors Rewards