Organization and Management Test 1

EPA

Environmental Protection Agency

Demographics

measures various characteristics of the people who make up groups or other social units

forecasting

method for predicting how variables will change in the future

steps manager's can take to instate an ethical business climate

- establishing global standards for behavior and prevent ethical problems

What are some issues associated with decisions made by groups?

- one group member dominates - satisficing is more likely with groups-- instead of optimizing or maximizing decisions -pressure to avoid disagreement can lead to a phenomenon called "groupthink" which occurs when people choose not to disagree or raise objections. - goal displacement- when new goals emerge to replace the original ones. when group members have different opinions, and the winning argument becomes the new goal.

General decision-making stages

1. Identifying and diagnosing the problem 2. Generating alternative solutions 3. Evaluating Alternatives 4. Making the choice 5. Implementing 6. Evaluation

psychological biases

1. Illusion of control- a belief that one can influence events even when one has no control over what will happen. This overconfidence can lead to failure because decision makers believe they are immune to failure. Managers can correct this problem by developing a realistic picture of their strengths and weakness and seeking out advisers who can point out consequences they may not have considered 2. Framing Effects- phrasing or preventing problems or decision alternatives in a way subjective influences override objective facts. 3. Discounting the Future- in evaluating alternatives, weighting short-term costs and benefit more heavily than long-term costs and benefits.

Six Steps in formal planning process:

1. Situational Analysis 2. Alternative Goals and Plans 3. Goal & Plan evaluation 4. Goal & Plan Selection 5. Implementation 6. Monitor & Control

5 ethical theories:

1. Universalism 2. Egoism 3. Utilitarianism 4. Relativism 5. Virtue Ethics

What are some ways groupthink can be combated?

1. devil advocate- a person who has the job of criticizing ideas to ensure that their downsides are fully explored. 2. dialectic- a structured debate comparing two conflicting courses of acting 3. brainstorming- a process in which group members generate as many ideas about a problem as they can; criticism is withheld until all ideas have been proposed.

What is involved in Situational Analysis?

A process planners use, within time and resource constraints, to gather, interpret, and summarize all info relevant to the planning issue under consideration

Tactical Planning

A set of procedures for translating broad strategic goals and plans into specific goals and plans that are relevant to a particular portion of the organization, such as functional area like marketing.

Programmed Decision

Decisions encountered and made before, having objectively correct answers, and solvable by using simple rules, policies, or numerical computations.

Utilitarianism

Directly seeks the greatest good for the greatest number of people.

FCC

Federal Communications Commission

What is involved in implementing goals and plans

Managers and employees must understand the plan, have resources to implement it, and be motivated to do so. Proper implementation is the key to achieving goals.

What is involved in Evaluation goals and plans

Managers evaluating the advantages, disadvantages, and potential effects of each alternative goal an plan. They must prioritize the goals and even eliminate some of them. They identify the priorities and trade-offs among the goals and plans.

NLRB

National Labor Relations Board

Nonprogrammed Decision

New, novel, complex decisions having no proven answers.

OSHA

Occupational Safety and Health Administration

Single-Use Plan:

Plans designed to achieve a set of goals that are not likely to be repeated in the future

Tangible Assets

Real estate, production facilities, raw materials

SEC

Securities and Exchange Commission- regulates US markets to protect investors.

Three Levels of planning:

Strategic, Tactical, Operational

intermediate consumer

a customer who purchases raw materials or wholesale products before selling them to final consumers

diversification

a firm's investment in a different product, business, or geographic area.

What is involved in selecting goals and plans?

The managers select the most appropriate and feasible alternative. Usually leads to a written set of goals and plans.

Operational Planning

The process of identifying the specific procedures and processes required at lower levels of the organization.

What is involved in Alternate Goals and Plans?

This plan stresses creativity and encourages managers and employees to think broadly. This step should generate alternative goals, and alternative plans to achieve those goals.

When is implementation the most successful?

When all employees are informed and involved in the previous planning steps. This increases motivation and commitment from the whole organization.

concentration

a corporate strategy focusing on a single business competing in a single industry

final consumer

a customer who purchases products in their finished form

Scenario

a narrative that describes a particular set of conditions

strategy

a pattern of actions and resource allocations designed to achieve the organizations goals.

Virtue Ethics

a perspective that goes beyond the conventional rules of society by suggesting that what is moral must also come from what a mature person with good "moral character" would deem right.

situational analysis

a process planners use, within time and resource constraints, to gather, interpret and summarize all information relevant to the planning issue under consideration

ethical issue

a situation, problem, or opportunity in which an individual must choose among several actions that must be evaluated as morally right or wrong.

low-cost strategy

a strategy an organization uses to build competitive advantage by being efficient and offering a standard, no-frills product.

differentiation strategy

a strategy an organization uses to build competitive advantage by being unique in its industry or market segment along one or more dimensions

concentric diversification

a strategy used to add new businesses that produce related products or are involved in related markets and activities...

Egoism

acceptable behvior is that which maximized the benefits for the individual. "Do the thing that promotes the greatest good for yourself"

Universalism

all people should uphold certain values, such as honesty or other values that society needs to function. Universal values are principles so fundamental to human existance that they are important in all societies.

SWOT analysis

an assessment of the organization's strengths, weaknesses, opportunities, and threats that helps executives formulate strategy.

strategic maneuvering

an organization's conscious efforts to change the boundaries of its task environment

Intangible Assets

company reputation, culture, technical knowledge, and patents, as well as accumulated learning and experience.

Buffering

creating supplies of excess resources in case of unpredictable needs

Relativism

defines ethical behavior based on the opinions and behaviors of other relavent people.

conglomerate diversitfication

expansion into unrelated businesses, typically to minimize risks due to market fluctuations in one industry.

Standing Plans

focus on ongoing activities designed to achieve an enduring set of goals.

inputs

good and services organizations take in and use to create products or services

competitive intelligence

information that helps managers determine how to compete better as a result of a competitive analysis and environmental scanning.

Strategic Planning

involves making decisions about the organization's long term goals and strategies. Senior executives are responsible for the development and execution of the strategic plan. Low detail, 3-7 year time horizon.

Why is the SWOT analysis used?

it helps managers summarize the relevant, important facts from their external and internal analyses. Based on this, managers can identify the primary and secondary strategic issues that the organization faces. They then create a strategy to build on the SWOT analysis to take advantage of the available opportunities by capitalizing on the organization's strengths, neutralizing its weaknesses, and countering potential threats

External Environment

law and politics, economy, technology, demographics, and social values.

smoothing

leveling normal fluctuations at the boundaries of the enviornment ex) clearance sale at end of season

Difference between satisficing and optimizing:

satisficing is choosing the first option that is minimally acceptable or adequate, not the best choice, while optimizing is achieving the best possible balance among several goals

environmental scanning

searching out information that is unavailable to most people, and sorting through that info to interpret what is important to the business. A manager would ask questions like: Who are our current competitors?

What is involved in monitoring and controlling performance?

sometimes ignored- but this step is essential. Managers have to continually monitor the actual performance of their work units against the unit's goals and plans. They also need to develop control systems to measure that performance and allow them to take corrective action when plans are implemented improperly or the situation changes.

Contingency Plans

specific actions to take when a company's initial plans have not worked well or events in the external environment require a sudden change.

vertical integration

the acquisition or development of new businesses that produce parts or components of the organization's product.

Whats the macroenviornment

the general environment, includes governments, economic conditions, and other fundamental factors that generally affect all organizations

competitive environment

the immediate environment surrounding a firm; includes suppliers, customers, rivals, new entrants, and substitute or complementary products.

supply chain management

the managing of the network of facilities and people that obtain material from outside the organization, transform them into products, and distribute them to consumers.

benchmarking

the process of comparing an organization's practices and technologies with those of other companies

organization culture

the set of important assumptions about the organization and its goals and practices that members of the company share.