BUSN 201 - Exam 2 (Ch 6-10)

Optimization

Process of balancing conflicting goals and find a compromise

New Products and Services Development - Ch 8

R&D: set of act. done to identify new ideas that have potential to result in new goods and services Three types: 1. basic consists of uncovering new knowledge w.o regard to potential use 2. Applied - consists of activities geared towards uncovering knowledge with use 3. devlopment & implementation- done specfically for prod develop product extension & refinement: extend life of firm by reinvention. Refined: improvements added extended: add features to make the product life cycle longer

Planning Production - Ch 8

1. Design Planning: determine what product looks like, where and how it would be producted and what options it would have. development of plan to convert idea to product or service. determine where technology will be required. - product design: specifications from which product can be produced - capacity: the amount of goods or services a firm can produce in a given time 2. Facilities Planning: firm will choose existing factory unless more capacity is needed and the cost of building a new one is too high location of factory is dependent on suppliers, labor, quality of life, cost of land & building, state laws and tax, financial support, energy needs - human resources: need to make sure managers and staff are avaliable to run factory. training programs. comply with labor laws and human rights - plant layout: arrangement of machinery and personnel. Three types: process, product and fixed position. 3. Operational Planning: done to decide on the amount of products or services each facility will create during a specific time period. Four steps: 1. select planning horizon, estimate mkt demand, compare demand with capacity and adjust products to meet demand

Planning

establishing goals and deciding how to accomplish them. Can be based on a mission statement. Part of planning is the Strategic Planning Process: establishing goal and objectives and allocating resources to achieve them. Goal: end result you want to have within 1 to 10 years Objective: statement detailing what you want to accomplish over a shorter period

Decentralization - Ch 7

management consciously attempts to spread authority widely across organization levels.

Corporate Culture - Ch 7

the inner rites rituals, heroes and values of a firm. can influence how workers act and the public perception of the firm. Determined by: - physical work environment - how company greets its guests - how employees spend their time four types: 1. Networked culture: base of trust and friendship between workers. Strong commitment to firm and informal environment 2. Mercenary: high degree of passion, sense of purpose, work oriented, Large banks and investment firm are this category. Winning is key 3. Fragmented: employees are not friends. work at firm not for it. workers have high degree of autonomy, flexibility and equality. 4. Communal: combines networked and mercenary. friends but focus on high performance, People's lives resolved around the product and success is celebrated by all.

Delegation - Ch 7

third major step in organizing a firm. Delegation assigns work and power to other workers. Three steps: 1. Manager assigns responsibility 2. Grant authority 3. Create accountability Barriers for delegation: sometimes managers will be unwilling to delegate tasks because they have trust issues or perform too well. Finally some do not delegate because they are disorganized.

Centralization - Ch 7

works to concentrate authority at the upper levels. For example shipping companies like UPS tend to be centralized with shipping dispatches coordinated by upper management.

Operations Control - Ch 8

1. Purchasing: obtaining required materials , look at price, quality, reliability, credit terms and shipping costs 2. inventory: process to manage inventories to minimize costs and minizes hosting hosts and stock out costs. Materials requirements planning is computer system to keep record of inventory. -> manages lead times and delivery schedules. Just-in-time inventory: inventory comes only when needed to avoid storage and holding costs 3. Scheduling: ensuring materials and other resoucrces are at the right time and place. Need to pay attention to routing (sequence) and timing. 4. Quality Control: Malcom Baldrige Award given by US President to orgs with specific managerial tasks that lead to improved quality on products and services. Quality control is process of ensuring that goods and services are prod to design requirements and lives up to standards of organization. International organization for standardization (ISO) - iso 9000 means high quality and iso 14000 means eviromentally friendly

Committees & Task Forces - Ch 7

Ad hoc - temporary short term commitee standing commitee - relatively permanent to perform reoccuring task task force - to fix a problem or investigate informal organization: pattern of behavior that stems from personal versus official relationships. Informal group: created by group members to accomplish goals that may or may not be relevant to firm grapevine: informal communication network within an organization. Can be passed vertically, horizontally or diagonal. two unrelated departments may communicate. Managers should act when information is inaccurate but grapevine can also be helpful.

Increasing Importance of Service - Ch 8

America is classified as a service economy Planning quality service: sim to prod because they must plan, design, executive, eval and improve and redesigh services to fit customers. 1. determine who customer is 2. figure out what they want or need 3. plan hiring, training, supplies and marketing and creating management and accounting Evaluate services: 1. customers have more say in obtaining service 2. service is consumed immeditaely and cannot be stored 3. service is provided where and when customers want it. location is key 4. labor intensive 5. services are intangible and therefore more difficult to evaluate customer satisfaction

What is an organization? - Ch 7

An organization is a group of two or more people who work towards a common goal. Organization chart: diagram that represents the positions and relationships within an organization Chain of command: the line of authority that extends from the highest to lowest levels of a firm

Managerial decision making - ch 6

Decision Making is defined as the act of choosing an option from a set of alternatives. Managerial decision making has 4 steps: 1. Identify problem or opportunity 2. Generating Alternatives 3. Selecting alternative 4. implementation and evaluating solution Problem is defined as a discrepancy between actual condition and desired condition.

SWOT - ch 6

Def: Identification of organization's strengths, weaknesses, opportunities and threats.

Leadership - ch 6

Defined as ability to influence others. Leadership differs from management because leadership aims for voluntary cooperation. Formal leadership has actual authority while informal do not. Styles: 1. Autocratic: task-oriented. Decisions are made unilaterally with little concern for outside opinions. 2. Participative: Common in today's environment. These kind of leaders consult employees before making decisions. Fosters sense of ownership and commitment in workers. Three kinds (Consultative, Consensus, and democratic) 3. Entrepreneurial: Task oriented, driven, charismatic. Works long hours. Takes initiative

Departmentalization - ch 7

Defined as the process of grouping jobs into manageable units. Can group jobs by: 1. Function: groups jobs that relate to same organizational activity. Con is that department is focus instead of the firm. 2. Product: groups activities related to a good or service. Used by firms with many services or goods. Each department handles their own marketing, production, finances and human resources. Downside is that focus is on the product versus the whole firm 3. Location: groups activities by geographic area which may range from different countries to regions. Allows firm to respond quickly to demands of a area. Needs large number of employees to run different areas. 4. Customer: groups activities according to the need of customers. Allows firms to deal with unique customers or groups. Drawback is that larger than usual staff is needed. Many firms use combo of the departmentalization strategies, ex: PepsiCo is organized by product and location.

Job Design - Ch 7

Job Specialization: separation of all organizational activities into distinct tasks and the assignment different tasks to different people Rationale for specialization: 1. job is too large to handle by one person 2. learning one task can be done quickly and performed efficiently 3. Repeating task saves time 4. Easy to have specialized equipment 5. easy to train Alternatives: Specialization can leave employees bored and dissatisfied: 1. To fix this, managers may use job rotation or shifting employees from one job to another. 2. Job enlargement 3. job enrichment

Improving productivity with tech - Ch 8

Lean Manufacturing: concept built on idea of eliminating waste from production activities, reduce supplies, time, improve quality Automation: total or near total use of machines to do work. made possible by microprocessor, small chip used in robots and computer manufacturing systems. robotics: use of programmable machines to perform variety of tasks by manipulating materials and tools Computer manufacturing systems: 1. CAD: design process 2. CIM: designs and controls machinary needed to produce 3. CAM: plan and control manufacture 4. Flexible Manufacturing system (FMS): reprograms and restarts machine when processes have to be done over and over to save time of having to retool machines

Basic Management Functions - Ch 6

Management: the process of coordinating people and other resources to achieve organization's goals. 4 resources: human, information, material, financial Functions: Planning, organizing, leading and motivating and controlling. Organizing: After goal-setting and planning, manager groups resources and activities to accomplish goals. Ex: Hiring employees and delegating tasks Leading and Motivating: Concerned with human resources. Leading is process of influencing people to work toward common goal. Motivating is providing reasons for people to work in the firm's best interests. Leading plus motivating is often known together as DIRECTING. Controlling: process of evaluating and regulating on-going activities to make sure goals are met. Ex: checking products against quality standards. Three steps: 1. Setting standards 2. Measuring performance 3. Taking corrective action

Kinds of Managers - Ch 6

Managers are organized by level in a firm and within department. Top Managers: upper-level exec who guides and controls an organization's overall fortunes. Develop the mission and strategy. Ex: President, VP, CEO and COO Middle Management: Make up largest group of managers. Implements strategy. Develop tactical plans and operational plans. Supervise first-line managers. Ex: Divisional manager, department head, plant and operations manager First-line Manager: coordinates and supervises operating employees. First-line employees motivate employees and solving everyday problems. Ex: office manager, supervisor and foreman Areas of Management Specialization: 1. Finance: Responsible for financial resources. Many CEOS and presidents were first trained as Financial managers. 2. Operations Manager: manages system that converts resources into goods and services. 3. Marketing Managers: responsible for exchange of products between firm and customers. Market research, advertising, promotion, sales and distribution 4. Human Resources: managing human resources. Hiring, Training and evaluating performance 5. Administrative: provides overall administrative guidance and leadership. Coordinates activities of all managers in all other departments,

Key skills of successful Managers - ch 6

Managers need conceptual, analytic, interpersonal, technical and communication skills. 1. Conceptual: ability to think in abstract terms. See the big picture. ex: viewing trends and developing products to meet needs 2. Analytic Skills: ability to identify problems, generate solutions and select best option 3. Interpersonal skills: deal effectively with people 4. Technical Skills: skills needed to accomplish specialized activity. Ex: first-line managers understanding a process so they can train employees 5. Communication Skills: oral and written. Ability to listen and speak and write. Sales presentation, conferences, interviews,

Production Definition - Ch 8

Operations Management: all the activities required to produce goods and services, productivity in the US has increased due to innovation and employees are highly skilled to operate special equipment. US markets will focus on meeting demand and quality, increasing productivity, reducing costs, using CAD, green. Mass prod: large # of identical goods over long period. Analytical= breaks down raw materials to component parts. Synthetic: combining raw materials to create a product. Operations Managers need to: 1. motivate and lead 2. understand technology 3. appreciate control processes to lower costs and improve quality 4. understand relationship between consumer, marketing and production

Types of Plans

Plan: outline of the actions by which an organization intends to accomplish goals and objectives Strategic Plan: broadest plan, developed as a guide during strategic planning process. Created by top management and answers what business the firm is in and what they want to be. Tactical Plan: Narrower plan developed to implement a strategy. Cover 1 to 3 year period. Firm's may implement tactical plans to cover each year to complete their five year strategic plan Operational Plan: designed to implement tactical plan. For 1 year or less and deal with how to accomplish objective. Contingency Plan: plan that outlines alternative course of action that organization may take if plans are disrupted or are ineffective

Organizational Height

Span of management has impact on relations between managers and workers. Organizational height is the number of layers or levels of management in a firm. If the span of management is wide, fewer levels are needed and the organization is flat. If the span is narrow, more levels are needed and the firm is tall. Admin costs are higher. Communication may become distorted because info has to break through more levels. When companies need to cut costs, a way to do this is to decrease organizational height. Wide spans means managers will need to do more administrative duties and also do more supervising because their are fewer managers to go around.

SMART goals - ch 6

Specific: Well defined, Clear to anyone that has a basic knowledge of the project Measurable: Know if the goal is obtainable and how far away completion is Find out when you have achieved your goal Agreed Upon: Agreement with all the stakeholders what the goals should be Realistic: Within the availability of resources, knowledge and time Time-Based: Enough time to achieve the goal Not too much time, which can affect project performance examples: Within a month, I am going to get set up to sell handmade cards on Etsy, which will allow me to benefit financially from my favorite hobby. Within six weeks, I will have an inventory of 30 handmade cards to sell and aim to sell a minimum of five cards per week, building customer relationships through word of mouth, referrals and local networking.

Total Quality Management - ch 6

The coordination of efforts directed at improving customer satisfaction, employee participation, supplier partnerships and facilitating an organizational atmosphere of continuous quality improvement One tool for Total Quality Management is Benchmarking which is the process of evaluating practices of another organization for the purpose of improving quality.

The Conversion Process - Ch 8

Utility: ability of the good or service to satisfy need Form utility: created by people converting raw materials, finances and info into finished products Manufacturing through conversion process: 1. Focus: the resource that make up the major or most important input. Resources are financial, human, material and informational ex: financial resource is focus in bank 2. Mag of change: the degree to which the resources are physically changed. 3. Number of prod processes: a single firm may employ 1 prod process or many.

Core Competencies

approaches and processes that give a company competitive advantage

Forms of organizational structure - Ch 7

four basic forms of organizational structure: Line: chain of command goes directly from person to person, used for small operations like a retail store. Managers are called line managers. Used to make decisions quickly and have direct accountability. Downside is line managers have many tasks and need a wide range of knowledge. Line-and-staff: Utilize chain of command from line strucure but also provides line managers with specialists called staff managers. Better for medium and large firms. Staff managers provide support and expertise to line managers. They are not part of chain of command but supervise assistants. Line managers have line authority while staff managers do not. Staff managers only have advisory or functional authority which means they can only make decisions after consulting line manager or make decisions in their area of expertise. Matrix: combines horizontal and vertical lines of authority usually by superimposing product departmentalization on a functionally departmentalized firm. Added flexibility and creativity because cross-functional teams can form, where people from varying skills work together. Disadvantage is people can be confused on who to report to. More $$ to maintain. Network: admin is the primary function performed. other functions like engineering, production, marketing and finance are contracted out to other firms. Does not manu. product it sells. has fewer permanent employees. Pro is flexibility, more teamwork instead of one central leader. cons are low morale, hard to control work and high turnover of workers and lack of clear authority.

Span of management - Ch 7

fourth step. This is determining the number of workers who report directly to one manager. No right way. Organizations can have wide or narrow spans of management depending the need or depending the department within an organization. Wide span - manager has large number of subordinates. Can be wide when 1. the manager and the subordinates are very competent and 2. the organization has a well established set of standard operating procedures and 3. few new problems are expected to arise Narrow - when the manager only has a few subordinates. Can be used when 1. workers are physically located far from one another, 2. the manager has much work to do in addition to supervision , 3. great deal of interaction is required, 4. new problems arise often